Each week Trifecta Stocks identifies names that look bearish and may present interesting investing opportunities on the short side.
Using technical analysis of the charts of those stocks, and, when appropriate, recent actions and grades from TheStreet’s Quant Ratings, we zero in on five names.
While we will not be weighing in with fundamental analysis, we hope this piece will give investors interested in stocks on the way down a good starting point to do further homework on the names.
The provider of cloud-based software for the life sciences field is another high-valued stock that has come crashing down to earth. Once above $340 or so, the stock has lost more than 30% of its value and is looking to drop even more.
Money flow is weak and the Relative Strength Index (RSI) is well oversold, but that is not a buy signal. The cloud is red as well, with Moving Average Convergence Divergence (MACD) on a bear signal. What else do you need? Oh, a target.
Let’s look for a move down to $195 or so (some longtime support), but put in a stop at $245.
The information technology and analytics company has really come down hard this month on some big-time volume. The price action has been spectacular, with the stock falling some 30% since the start of the year. That is not good news for the bulls.
Money flow is quite bearish while the Relative Strength Index (RSI) is now fully overbought. That’s not a buy signal, of course; also, the cloud is red and MACD is still rolling over. A pull-up may occur any day, and that would be a good spot to get short.
Look for the $17-$19 area to get short and target $11, but put in a stop at $22.
This commentary is an excerpt from “5 Bearish Bets” a weekly feature sent to subscribers of Trifecta Stocks. Click here to learn more about this portfolio, trading ideas and market commentary product.
Want to find out the other stocks we think look good short this week and how to play them? Click here for a trial subscription to Trifecta Stocks and get “Bearish Bets” each week!
— Bob Lang and Chris Versace are co-portfolio managers of Trifecta Stocks.