Let’s Drill Down on Stanley Black & Decker Stock

Stanley Black & Decker (SWK) is the world’s largest maker of tools, the second largest commercial electronic security company, and a big provider of engineered fastening systems.

Let’s check out the charts and indicators. 

In the daily bar chart of SWK, below, we can see that the shares are under pressure and poised to make a new low for the move down. Trading volume has been heavy since February and the On-Balance-Volume (OBV) line has been weak for the past 12 months.

The Moving Average Convergence Divergence (MACD) oscillator is below the zero line and can only manage a number of cover shorts buy signals. 

 

In the weekly Japanese candlestick chart of SWK, below, we see a bearish picture. No bottom reversal yet and no meaningful lower shadows. The slope of the 40-week line is negative.

The weekly OBV line shows some temporary improvement in the past three months. The MACD oscillator is in a bearish alignment but there was some narrowing of the two moving averages that comprise this indicator. 

 

In this daily Point and Figure chart of SWK, below, we can see a downside price target in the $104 area. 

 

Bottom-line strategy: Avoid the long side of SWK for now but let’s check on the charts in a few weeks.