Global nutrition company Herbalife (NYSE:HLF) tried to recapture its 50-day moving average but failed on multiple attempts over the past month. When a stock trades below a key moving average, it is generally seen as a negative on the chart. On Tuesday, HLF traded around $68, which is just above the important 200-day moving average at $67.45.
Support To Watch
A failure to hold this key area will indicate further weakness in the equity and a potential decline down to the $61 level, where it should find solid institutional support. The stock found support at this level back in August. Often, prior support levels will be defended when retested.