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 footwear maker has been playing it sideways for the better part of five months, but now has narrowed into a triangle, and it appears the next move is down.
Why is that?
The gap down in late February on big volume was not even challenged. It has made some lower highs and looks to make a run to the 200-day moving average.
Momentum is weak, and there is a gap around the $21 level, a nice 20% lower.
The car rental and leasing behemoth is sporting a bearish flag pattern here; it's just a matter of time before it fails.
The next area of support comes in around the $15 area, a good 15% lower. Momentum is weak as the stock battles with the 20-day moving average.
Moving average convergence divergence (MACD) is on a sell signal; once the triangle is busted the stock is headed lower.
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.
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-- Bob Lang and Chris Versace are co-portfolio managers of Trifecta Stocks.