How To Trade Nu Skin Enterprises Inc (NYSE:NUS)?

Posted by: : Viraj ShahPosted on: March 4, 2014 How To Trade Nu Skin Enterprises Inc (NYSE:NUS)?

The weekly Analysis of Nu Skin Enterprises Inc (NYSE:NUS) shows that it is on a downtrend. In the week ending 01/12/2014, the stock had plunged almost 50%. The stock now seems to be in a consolidation phase before the continuation of the downtrend. It seems to be forming a bearish pennant on the weekly chart. A breakout below the lower channel of the pennant would indicate that the downtrend would continue. The next major support looks to be around $50.11. The bearish pennant is marked in the chart below. It is advisable to wait for a pennant breakdown before taking short positions in the stock.


On analyzing the daily chart, the short term trend of Nu Skin Enterprises Inc (NYSE:NUS) seems to be negative. The stock has an immediate resistance of $78.33. The 200 day Simple Moving Average of Nu Skin stands at $92.95. This 200 day MA was broken with huge volumes on 01/16/2014. Only a close above this level would change the trend of Nu Skin to bullish. The next support stands at $67.51 which is likely to be tested in the coming days. The next resistance is also close by; it stands at $80.27 which is the five day Exponential Moving Average. In the daily chart, a bearish flag seems to be forming, which indicates that the consolidation after the downtrend is going on. A breakdown from the flag would be a strong indicator that the downtrend would continue.

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Nu Skin Enterprises Inc (NYSE:NUS) reported its Q4 results on March 3rd. It reported a better than expected EPs of $2.02.The revenues came slightly below the analysts expectation. The revenues stood at $1.06 billion. This was their first 1 billion quarter. There was a good increase in cash flow from operation. It rose to $530 million from 311 million in 2012.Also the balance sheet continues to be strong $547 million in cash and $182 million in debt

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Viraj Shah

Analyst at HEFFX
HEFFX Trading Room is lead by Shayne Heffernan and research from the Trading Desk is prepared by contributor Cyrus, Cyrus has done a M.Com (Finance) and currently pursuing CFP. He is a technical analyst who tracks US markets along with other global markets like India very closely. He is very passionate about stocks and believes that money can always be made in market.

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