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 online job recruitment advertising services in China seems to have run out of steam from its run higher off the March lows. Money flow has been bearish for a couple of months, every rally seems to be stalled out and the chart shows lower highs and lower lows. That's a bearish trend.
Moving average convergence divergence (MACD) is on a double sell signal, too. If short, use the channel here to support your play.
Set a stop around $69 and look to ride it down to the high $50s.
The maker of implantable lenses for the eye fell hard from a double-top formation and now is forming an "M," which is bearish. Note the negative money flow and double MACD sell signal.
The stock has not fallen all that much so far, but we easily could see a move down to the 200-day moving average (with the extended line). That level is in the low $40s, so a potentially nice 12% gain downward.
If short, put in a stop at $51.
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.