Potential Downtrend in BorgWarner BorgWarner has tumbled since the summer, and some traders may see risk of further downside.
The first pattern on today’s chart is the price zone around $32.75. The auto-parts company made lows there in December and January. It peaked at the same area this month. Has old support become new resistance?
Second, BWA is stalling at its falling 50-day simple moving average. That may suggest its intermediate-term trend is bearish.
Third is the trio of bearish gaps triggered by weak guidance after the last three quarterly reports. Those may reflect weakening fundamentals.
Finally, stochastics are dipping from an overbought condition.
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