Heico Corporation (HEI): Navigating the -14.6% Quarterly Decline and Key Technical Levels
Key Takeaways
- HEI has experienced a sharp recent decline, trading below key moving averages including the 50-day SMA near 302 and 200-day SMA around 316, indicating short-term bearish momentum.
- RSI(14) readings near 47 suggest neutral conditions on daily charts, while oversold levels around 27 on shorter timeframes point to potential bounce opportunities.
- MACD shows negative values around -1.82 to -3.93 with sell signals, confirming downward pressure.
- Pivot points highlight near-term support at 246-277 and resistance at 279-318.
- Volume remains near average levels at approximately 630,000 shares daily, with no significant spikes noted recently.
Trend Analysis
From what I see with HEI, the stock has entered a short-term downtrend over the past quarter, dropping about 14.6% amid broader pressures in the aerospace sector. It recently broke below a five-month rectangle consolidation pattern, speeding up the decline from highs near 362 to current levels around 276-287. Year-to-date, HEI is still up 14.7%, maintaining a longer-term uptrend from the 52-week low of 241. Over the last 30 days, price action has been essentially flat at +0.01%, though a sharp single-day drop of over 5% underscores rising volatility. Weekly charts show a prevailing sell trend, while monthly signals tilt toward buy.
Support and Resistance Levels
Key support is building near recent pivot lows, with S1 levels at 246-277 across classic and Fibonacci pivots. The 52-week low around 241 acts as major downside protection. Resistance starts at the daily pivot near 278-291, then R1 at 279-319, and prior consolidation highs around 320-330. These zones match previous areas where buyers stepped in during pullbacks. One thing that stands out is that a break below 274 could lead to deeper supports, while reclaiming 290 might signal stabilization.
Moving Averages
HEI is trading below most major moving averages, which are flashing predominantly sell signals. The 10-day SMA is at 292, 20-day at 283-288, 50-day at 291-303, 100-day at 286-316, and 200-day at 284-316. Exponential MAs align similarly in bearish fashion, with price under the 10 EMA at 289 and 50 EMA at 299. I also checked this using Tickeron’s AI Screener to compare against industry peers, and this setup highlights the erosion of short-term bullish momentum—though a crossover above shorter MAs could hint at a reversal.
Momentum Indicators
The momentum indicators paint a mixed picture with oversold conditions emerging. RSI(14) is between 27 (oversold on Investing.com) and 47 (neutral on TradingView), pointing to potential exhaustion in selling. Stochastic and Williams %R are deeply oversold near 15 and -96, respectively, conditions that often lead to bounces. MACD(12,26) is negative at -1.82 to -3.93 with a sell signal, backed by a high ADX above 53 showing strong downward trend strength. CCI(14) at -109 adds to the sell bias, but oversold ultimate oscillator readings suggest possible short-term relief.
Volume and Market Activity
Daily trading volume for HEI averages around 629,000 shares, with recent sessions up slightly to 652,000 during the decline. There's no sign of major spikes or unusual activity, which fits with orderly selling rather than panic. This average volume bolsters the current consolidation near lows, and I'm watching for higher participation on any breakout moves.
Tickeron’s AI Daily Buy/Sell Signals
In my trading routine, I rely on Tickeron’s AI Daily Buy/Sell Signals to cut through the noise on stocks like HEI. These AI-powered signals draw from massive datasets of technical indicators, price patterns, and historical trends, spotting potential entry and exit points by detecting recurring market behaviors, continuations, and reversals via machine learning models trained on decades of data. They help me confirm chart setups and make sharper decisions in volatile times. If you're analyzing similar setups, checking these signals can add valuable AI-driven perspective to your strategy.
Technical Outlook and Key Levels to Watch
I'm keeping an eye on the oversold momentum for a possible rebound to resistance at 290-300, where moving averages converge. Holding above the 277 pivot could steady the chart, potentially targeting channel up retests near 320 with rising volume. On the flip side, a drop below 274 might push toward 241 support. Watch for RSI divergence, MACD histogram changes, and Stochastic crossovers as reversal signals. The overall neutral-to-sell rating calls for caution until bullish confirmation appears.
Disclaimer
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Momentum Indicator for HEI turns positive, indicating new upward trend
HEI saw its Momentum Indicator move above the 0 level on May 05, 2026. This is an indication that the stock could be shifting in to a new upward move. Traders may want to consider buying the stock or buying call options. Tickeron's A.I.dvisor looked at 86 similar instances where the indicator turned positive. In of the 86 cases, the stock moved higher in the following days. The odds of a move higher are at .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Moving Average Convergence Divergence (MACD) for HEI just turned positive on May 05, 2026. Looking at past instances where HEI's MACD turned positive, the stock continued to rise in of 48 cases over the following month. The odds of a continued upward trend are .
HEI moved above its 50-day moving average on May 06, 2026 date and that indicates a change from a downward trend to an upward trend.
The 10-day moving average for HEI crossed bullishly above the 50-day moving average on May 14, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In of 23 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where HEI advanced for three days, in of 343 cases, the price rose further within the following month. The odds of a continued upward trend are .
Bearish Trend Analysis
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 6 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where HEI declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
HEI broke above its upper Bollinger Band on May 06, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Aroon Indicator for HEI entered a downward trend on April 09, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is slightly undervalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 66, placing this stock better than average.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating fairly steady price growth. HEI’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (8.953) is normal, around the industry mean (7.873). P/E Ratio (57.196) is within average values for comparable stocks, (63.561). Projected Growth (PEG Ratio) (2.693) is also within normal values, averaging (2.471). Dividend Yield (0.001) settles around the average of (0.018) among similar stocks. P/S Ratio (8.787) is also within normal values, averaging (100.102).
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General Information
a manufacturer of aerospace products and services
Industry AerospaceDefense
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