Every week Trifecta actions identifies names that look bearish and may present attractive investment opportunities on the short side.
Using technical analysis of the charts of these stocks and, where applicable, recent stocks and ratings from TheStreet Quantitative evaluations, we focus on five names.
While we’re not going to weigh in on fundamental analysis, we hope this article will give investors interested in falling stocks a good starting point to do some extra homework on the names.
Retailing has been a challenge lately and this clothing maker is a good example of the selling that has hit this group. Recent volume has been strong, and take a look at the money flow down – very bearish.
The 100 day moving average may be a bit of support here, but a pause and this stock is lost. We could see at least a run for the 200-day moving average ($ 94) or even a little lower, in the mid-80s.
Target a level around $ 84 but put a stop at $ 106.
This stock of this online destination for auto consumers in China has been pounding on high volume lately, and while the stock has shown low relative strength that doesn’t appear to be ending anytime soon. Money flows are awful, and although the Relative Strength Index (RSI) is oversold, it is do not a buy signal.
The moving average convergence divergence (MACD) has retreated for a new sell signal. The cloud is red. Is there something positive about this graph? Not that we can see.
Get down to at least $ 60, but stop at $ 89.
This commentary is an excerpt from “5 Bearish Bets”, a weekly article sent to Trifecta Stocks subscribers. Click on here to learn more about this portfolio, trading ideas and the market commentary product.
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– Bob Lang and Chris Versace are co-portfolio managers of Trifecta Stocks.
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