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4 Safe Dividend Stocks Whose Charts Say Caution Ahead

With a fundamental filter of looking for stocks with over 50-years of dividend growth I used my technical filter of a three-year weekly chart to look for trends, confirmation from volume, and momentum divergences to see if these four companies were likely to be good investments if we ignored the payout stream.

American States Water

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In this longer-term weekly chart of American States Water (AWR) , we can see AWR is below the flat 40-week moving average line. While this is a lagging indicator, a flat average line tells us the trend is neutral. In the second panel we can see the volume histogram with a neutral pattern.

Next we can see the On-Balance-Volume (OBV) line peaked in October and has been trending lower. This lower trend means that the sellers are more aggressive, with the volume of shares traded heavier on weeks when AWR closed lower. Last, there is a bearish divergence in Nov and January/February as prices made higher highs but momentum made equal highs.

Conclusion: I would look for AWR to work lower in the weeks and months ahead.


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