BY BILL GRIFFO

July 29, 2023

Each week, I’ll give an overview of a stock and Licia Leslie will follow that up with a chart analysis the next day. Bill Griffo will chime in with macro analysis and Andrew Giovinazzi will then finish out the week with a volatility breakdown.

Have a stock YOU want us to review? Email my team here. – Mark

Hey Traders,

Growing up, my sister, who was only 15 months older than me, was a huge Barbie fan. She had the cars, the outfits, and, of course, Ken. 

It looks like the movie has been a smash hit so far. Let’s face it – any movie with Margot Robbie and Ryan Gosling will attract crowds, so let’s see if it has staying power. 

Mattel Inc (Ticker: MAT) has not had the same success after making new highs this week. 

In fact it looks like a sale …

Taking It to the MAT

The MAT charting pattern below illustrates the classic reversal pattern. …

On the spike above $22 this week the relative strength index did come close to making a new high. 

On top of that, a bearish candlestick formed and was confirmed on Friday by making a lower low.

The other key confirmation came from the moving average convergence divergence (MACD) when its oscillator crossed below its 9-day signal line:

However, with MAT’s Morningstar fair value price at $25, any pullback is a buy. 

The $19.5 to $20 would be a good area to put on a tight call spread with a target of $22. 

You never know, maybe the baby boomer crowd will pay up to stream Barbie and push MAT up to its fair value price of $25 …

Live and Trade With Passion My Friends,

Bill Griffo