These five stocks have now fallen below their previous price support thresholds.
Despite the major indices showing resilience towards the year-end, there are apparent vulnerabilities hidden within the mix. The five stocks below have demonstrated signs of weakness by plummeting below their previous levels of resistance, where buyers managed to overcome sellers.
5 Stocks Showing Signs of Weakness
Resmed (NYSE: RMD)
The stock appears to be following a trend of a head-and-shoulders pattern, which is typically suggested by analysts as an indication of lower prices. This pattern seems to have manifested itself when the price dropped below the early October and mid-November lows, indicated by the red dotted line.
Resmed is a top-notch medical devices and supplies company with a market capitalization of $34 billion, a component of S&P 500.
Conoco Phillips (NYSE: COP)
December saw the well-known, prominent oil company fall below the red dotted line that connected the lows of August, September, and October. It's worth mentioning that the 50-day moving average dropped beneath the 200-day moving average back in early July, and the December rebound is underwhelming.
Conoco Phillips is a colossal entity with a market cap of $125 billion.
NetStreit (NYSE: NTST)
December has been a difficult month for this real estate investment trust that focuses on retail operations. The red dotted line connects the August low with the early November low, and it's evident how the price dropped below the former lows with force this month. Since August, the 50-day moving average has dipped beneath the 200-day moving average.
NetStreit is a Russell 2000 component and boasts a market capitalization of $1.13 billion.
NXP Semiconductor (Nasdaq: NXPI)
Not all semiconductor stocks are thriving as well as Nvidia. NXP, for instance, plummeted below the late April lows last week and rebounded slightly, remaining just above it (big red circle). In late September, the 50-day moving average crossed beneath the 200-day moving average (tiny red circle).
NXP, based in the Netherlands, is a part of both the Nasdaq 100 and the S&P 500. The market cap is $54 billion.
Xerox (Nasdaq: XRX)
The renowned brand from the "technology boom era" is making an attempt to rebound from the new lows of late October/early November. That drop took out the early August support level. In May, the 50-day moving average dropped below the 200-day moving average, an indicator of vulnerability to come.
Xerox Holdings is a Russell 2000 component with a market capitalization of $1.14 billion. The stock is available at a 13% discount from its book value.
Data sourced from FinViz.com. Charts courtesy of Stockcharts.com.
Additional analysis and commentary can be found at johnnavin.substack.com.
- Despite the NASDAQ 100 and S&P 500 showing resilience, NXP Semiconductor (Nasdaq: NXPI), a Dutch company and part of both indices, has experienced weakness, dipping below its late April lows last week.
- Resmed (NYSE: RMD), a S&P 500 component and a leading medical devices and supplies company, has also shown signs of vulnerability, dropping below its early October and mid-November lows, indicating a potential trend of lower prices.
- Xerox (Nasdaq: XRX), a well-known brand from the technology boom era and a Russell 2000 component, is currently attempting to rebound from new lows, with its stock available at a 13% discount from its book value.
- Conoco Phillips (NYSE: COP), a massive oil company with a market cap of $125 billion, also plummeted below the red dotted line back in December, following a decline in its 50-day moving average compared to the 200-day moving average in early July.
- NetStreit (NYSE: NTST), a real estate investment trust focused on retail operations and a Russell 2000 component, has struggled in December, with its price dropping below August's lows, indicating a continued downtrend and underscoring the vulnerabilities within major indices.
