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.
No sleeping on this one, this chart is looking quite bearish here. With a defined downtrend channel of lower highs and lower lows this stock is headed much lower.
We could see a run to the 200-day moving average around $80 or so, which is about 35% lower. The Moving Average Convergence Divergence (MACD) is on a sell signal, and the money flow is bearish. First up though would be the 100-day moving average, which comes in around $106, and that is a nice gain to the downside.
Put in a stop at $130.
Apogee fell hard last week and continues to look vulnerable to more downside. The gap lower stopped at the 100-day moving average but there is bearishness all around.
MACD is on a double sell signal while money flow wreaks bear. The Relative Strength Index (RSI) is sloping downward as well and the cloud is about the turn down. Support below the 100 DMA comes in around $29, so if short ride it down to there but put in as top at $38.
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.