Sell Alert: Taking Profits On Invesco

Summary

  • Invesco is overbought on the weekly RSI chart and there are negative divergences in MFI and CMF.
  • An activist investor saw what I did, agitated for some changes and is pushing the company towards an acquisition or more streamlined model.
  • The dividend is very nice and a buyout could lift the stock higher, so I don’t recommend selling all, rather, sell down to a starter position.

I recommended Invesco (IVZ) several times from the lower teens to single digits. It is now trading over $21 per share. It is time to take profits. 

As you can see, the Relative Strength Index on the weekly chart is overbought.

The money flow index has trailed and turned over a bit.

And Chaikin Money Flow has turned over as well.

These are negative divergences from RSI and the rising price. That is a typical signal that a price stall is soon to occur with a possible correction.

That said, the stock sports a great dividend and a takeover, as rumored, could raise the price a bit more. 

I strongly suggest taking your position down to a starter position of 1% of your total portfolio (all investment accounts combined) value or if you are more risk tolerance 2% of your total portfolio value.

Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.

Additional disclosure: I sold my entire IVZ position, however, I manage other people’s money and am subject to different criteria than you in your personal accounts.

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