NutriSystem Inc

On July 31 we mentioned that NTRI was about to test the combined support of a medium-term trendline and its 200 DMA. As you can see from the chart below, today's 7.5% drop has sent the price below both of these support levels. This move lower is particularly interesting today because NTRI has not traded below its 200 DMA since October 2004. Many technical traders will now keep a bearish outlook on this stock until the price is able to get back above the former support.