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Pullback Testing Important Near-Term Support Level - Thursday, September 8, 2016
Fortune Brands Home & Security Inc's (FBHS -$0.59 or -0.94% to $61.93) recent weakness has it testing its 50-day moving average (DMA) line ($61.97) and prior lows ($61.91 on 8/17/16) defining important near-term support. More damaging losses and violations may raise concerns and trigger technical sell signals, meanwhile it may be building a new base. However, it has seen its Relative Strength Rating slump to 71, well below the 80+ minimum guideline for buy candidates under the fact-based investment system.
It was last shown in this FSU section on 8/01/16 with an annotated graph under the headline, "Perched Above 'Max Buy' Level Following Volume-Driven Gain". Volume was +66% above average on 7/28/16 triggering a technical buy signal while hitting new highs after gapping up. Disciplined investors avoid chasing stocks more than +5% above prior highs.
It reported earnings +39% on +11% sales revenues for the Jun '16 quarter. The high-ranked Building - Construction Products firm showed encouraging earnings acceleration in sequential quarters, up +16%, +23%, +27% and +39% in the Jun, Sep, Dec '15 and Mar '16 quarters, respectively. The larger than +25% increases (C criteria) helped it better match with the fact-based investment system's fundamental guidelines.
FBHS currently has a Timeliness Rating of A and a Sponsorship Rating of B. It was first highlighted in yellow with pivot point cited based on its 4/21/16 high plus 10 cents. The number of top-rated funds owning its shares rose from 805 in Sep '15 to 1,003 in Jun '16, a reassuring sign concerning the I criteria.
Charts used courtesy of www.stockcharts.com
Perched Above "Max Buy" Level Following Volume-Driven Gain - Monday, August 1, 2016
Fortune Brands Home & Security Inc (FBHS +$0.33 or +0.52% to $63.60) is consolidating just above its "max buy" level. Volume was +66% above average on 7/28/16 triggering a technical buy signal while hitting new highs after gapping up. Disciplined investors avoid chasing stocks more than +5% above prior highs.
It reported earnings +39% on +11% sales revenues for the Jun '16 quarter. The high-ranked Building - Construction Products firm showed encouraging earnings acceleration in sequential quarters, up +16%, +23%, +27% and +39% in the Jun, Sep, Dec '15 and Mar '16 quarters, respectively. The larger than +25% increases (C criteria) helped it better match with the fact-based investment system's fundamental guidelines.
FBHS currently has a Timeliness Rating of A and a Sponsorship Rating of B. It was first highlighted in yellow with pivot point cited based on its 4/21/16 high plus 10 cents. It was last shown in this FSU section on 7/11/16 with an annotated graph under the headline, "New Highs Lack Important Institutional Volume Punch". The number of top-rated funds owning its shares rose from 805 in Sep '15 to 933 in Jun '16, a reassuring sign concerning the I criteria.
Charts used courtesy of www.stockcharts.com
New Highs Lack Important Institutional Volume Punch - Monday, July 11, 2016
Fortune Brands Home & Security Inc (FBHS +$0.89 or +1.48% to $61.10) hit another new high with below average volume behind today's 4th consecutive gain. Without volume at least +40% above average there is not the critical proof of lurking heavy institutional buying demand which is likely to lead to a sustained and meaningful price advance. Members were repeatedly reminded since first featured in the 6/22/16 mid-day report - "It needs subsequent volume-driven gains above the pivot point to trigger a technical buy signal.")
FBHS was last shown in this FSU section on 6/22/16 with an annotated graph under the headline, "Wait Continues for Technical Breakout", after highlighted in yellow with pivot point cited based on its 4/21/16 high plus 10 cents. The high-ranked Building - Construction Products firm has shown encouraging earnings acceleration in sequential quarters, up +16%, +23%, +27% and +39% in the Jun, Sep, Dec '15 and Mar '16 quarters, respectively. The larger than +25% increases (C criteria) help it better match with the fact-based investment system's fundamental guidelines.
Charts used courtesy of www.stockcharts.com
Wait Continues for Technical Breakout - Wednesday, June 22, 2016
Fortune Brands Home & Security Inc (FBHS -$0.41 or -0.71% to $57.16) encountered distributional pressure today after highlighted in yellow with pivot point cited based on its 4/21/16 high plus 10 cents. Disciplined investors will observe that it was noted - "It needs subsequent volume-driven gains above the pivot point to trigger a technical buy signal.
The high-ranked Building - Construction Products firm has shown encouraging earnings acceleration in sequential quarters, up +16%, +23%, +27% and +39% in the Jun, Sep, Dec '15 and Mar '16 quarters, respectively. The larger than +25% increases (C criteria) help it better match with the fact-based investment system's fundamental guidelines.
The number of top-rated funds owning its shares rise from 659 in Jun '15 to 844 in Mar '16, a reassuring sign concerning the I criteria. Patient investors will watch for fresh signs of meaningful new institutional buying demand driving the stock into new high territory (N criteria). Without that bullish "breakout" action, investors have less reasons to expect a considerable and sustained advance in the weeks and months ahead.
