Relative Strength in Nutrisystems as Your Portfolio Goes on a Diet

• Posted by Greg Harmon
• on October 13th, 2016

What are you supposed to do when the stock market sells off? If you are a bear you pound your chest and hope that your short term gains do not disappear before you can close your shorts. If you favor the upside at least on an intermediate basis if not longer term, you should be looking for relative strength. Stocks that exhibit relative strength in a down market are the ones that are likely to move higher when downward pressures are removed.

One of those stocks is Nutrisystem ($NTRI). As the broad market indexes are going through a 3 day pullback it has not budged. Even better, it sits at its 14 month high! In a market that was up you would not be surprised to see this stock pause as it retested that July 2015 high. So what to do about it? Nothing……. today. Wait for it to push to a new higher high.

It has a good history since February. A steady trend up with higher highs and higher lows. the chart suggest that a push through resistance would give a target to 33.50 at least. The RSI remains in the bullish zone and the MACD is rising. These support more upside.

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