Scotts Miracle-gro Co $smg Drops After Earnings

Discussion in 'Investment Charts' started by inthemoneystocks, Aug 1, 2018.

  1. inthemoneystocks

    inthemoneystocks Member

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    Last night, Scotts Miracle-Gro Co (NYSE:SMG), reported earnings that are not being well received by investors. Today, SMG stock is trading lower by 3.64 percent to $76.54 a share. This stock has been steadily declining the start of the year. It is now in a confirmed downtrend and trading below its 200 and 50-day moving averages. I like the $70.00 area for major support. This level is where the stock broke out in July 2016. Often, prior breakout level will be defended by the institutional crowd when retested.
     
  2. longtermbull

    longtermbull Administrator Staff Member

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    The shares dont seem to have recovered since the large fall ealier in the year. Lot of stale bulls and short sellers I would guess - will the shares fall through the $70 mark? Could it lead to a short term rally? Will the shares stablise and gradually start to recover? I would suggest that any recovery would need to be accompanied by any one of the following:-

    Takeover rumours
    Signs that trading has stabilised
    Firm plans to address the disappointing figures
    Management changes
     

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