Each week, Trifecta Stocks 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’s Quant Ratings, we are focusing on five names.
While we don’t weigh in on fundamental analysis, we hope this article will give investors interested in falling stocks a good place to start doing their homework on names.
RadNet Inc. (RDNT) was recently demoted to Socket with a C rating by TheStreet’s Quantitative evaluations.
A recent high was just too much for bulls to celebrate at this ambulatory diagnostic imaging service provider. The recent drop has been on huge volume; this stock is in a strong downward trend. Money flows have turned bearish as the slope of the Relative Strength Index (RSI) is evidence of a further decline to come.
The 100 day moving average is near (gold), but this stock is currently in distribution and there is not much to support it until the sellers are done.
Set a 200-day moving average target at $ 24 but stop at $ 33.
Schrödinger Inc. (SDGR: Nasdaq) was recently demoted to To sell with a D rating by TheStreet’s Quantitative evaluations.
This supplier of calculation software has fallen sharply on a fairly large turnover. The streak of lower ups and downs puts Schrödinger firmly in the bearish camp.
Money flows are bearish, albeit modestly. The RSI is steep and pointing downwards, the cloud is red and the recent May lows have been broken.
We might see a move towards the middle of the $ 40 or so, so aim for the $ 40 level but stop at $ 65. It’s a very bearish name here.
This commentary is an excerpt from “5 Bearish Bets”, a weekly article sent to Trifecta Stocks subscribers. Click here to learn more about this portfolio, trading ideas and market commentary product.
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– Bob Lang and Chris Versace are co-portfolio managers of Trifecta Stocks.
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