Boston, MA, 04/22/2014 (usastockreport) – The overall weekly trend for Mattel, Inc. (NASDAQ:MAT) is down. The stock had been on a strong uptrend from 2011. But in early 2014, the stock broke down and has been on a downtrend since then. The stock had broken down from the uptrend line with huge volumes. So, it is safe to assume that the stock is heading downwards. The weekly trend deciding level stands at $40.29 which will act as a strong resistance in the coming weeks. The next major resistance stands at $42.59 and then at $47.50. A few weeks before, the stock took resistance at the key level of $40.29 and has been going down since then. This is a strong bearish sign. Support exists at $37.00 and then at $32.50. The RSI is at 39.84 and moving down, indicating bearishness. The MACD lines are trading below the zero line and look bearish.
(Fig:) Daily chart for Mattel, Inc. (NASDAQ:MAT)
Even though the weekly trend is down as discussed earlier, there seems to be a bullish trend reversal on the daily charts. Hence a pullback cannot be ruled out. The stock had formed a bullish doji with good volumes on April 17, 2014;Thursday. The short term trend reversal was further substantiated when the stock made a positive daily close on Monday, April 21, 2014.
However, there is a lot of overhead resistance; hence the risk reward ratio does not currently favor the longs. Strong immediate resistance stands at $37.94 and then at $38.89. The daily pivot also stands at $39.00. There is also a gap resistance in the range of $39 to $42.These clusters of resistance above make it unfavorable for taking longs. The RSI is at 39 and moving down, indicating that some more downside is left for the stock. The MACD is below the zero line and is moving down. This also further substantiates that some more downside is left.
The sales for the Barbie dolls have seen an overall 14% decline for the first quarter for Mattel, Inc. (NASDAQ:MAT). The overall net loss for the company was announced to be $11 million.