ITG: Tough technicals for this fintech firm

May 17, 2018 02:00 PM
Sell

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ITG  Investment  Technology  Group (ITG) has been a laggard in a sector that is now spiraling lower — not a good combination. ITG is an investment play that is unchanged year-to-date and 3% lower during the last 12-month period. It sports a dividend yield of 1.4%. Earnings momentum has been waning with three straight losing quarters: 1.3%, 14.7% and 3.6% respectively. 

The stock has struggled in February and March and now sits 19% off its 52-week high. It did record a nice eight-week winning streak in December and January, raising the stock by 17%, but the rally was not accompanied by larger than average volume. Traders should short ITG with a retest of the late March break under a symmetrical triangle breakdown that aligned with the very round $20 level at $19.65. It fell every day of the week following the break and has found trouble closing above the 200-day simple moving average since breaking below it in February.   

About the Author

Doug Busch has been trading the U.S. equity markets for two decades using traditional technical analysis, as a trend follower, with an emphasis with Japanese candlesticks. @ChartSmarter