Penske Automotive Group (PAG) is still in a downtrend, and after an oversold rebound could conduct reduce in a months ahead.
PAG surfaced out in a $48 to $54 area for months (see a draft above). Prices incited down in August, followed by a genocide cranky from a 50-day and 200-day relocating averages in October. The On-Balance-Volume (OBV) line incited down with prices this month, revelation us that there was clever liquidation. There has been a new bullish dissimilarity between a reduce lows in cost and aloft lows from a movement indicator, though this might usually beget a rebound towards $46 before renewed offered develops.
In this longer-term chart, above, we can see that a $40 turn is key. It was pivotal in 2013, 2014 and could be pivotal again in 2016. The Moving Average Convergence Divergence (MACD) oscillator is in a bearish pattern and subsequent a 0 line. A weekly tighten subsequent $40 is expected to meant a deeper decrease to a subsequent support turn or support section in a $35 to $30 area for PAG.