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.
This Chinese e-commerce giant might have a bullish chart, but the bearish signals are starting to weigh. The Relative Strength Index (RSI) is weak and may hold at the 50 level, but if not this stock will sink like stone in water.
Money flow is not that strong any longer and JD's volume levels have receded. A clear break of the cloud and the 50-day moving average would be signs of more down action, but certainly a short here would not be a poor trade.
Keep a stop at the $32 level.
The maker of office furniture was pounded here lately after a big gap lower in March. The stock tried to recover but could not make it.
We may have some support here at $35, but with lower highs and lower lows the bears have a shot here to break this stock toward the December lows around $32.
Recent turnover has been higher on the down sessions and the cloud is bearish.
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.