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.
This provider of precision-policing technology is a repeat offender here; we've featured ShotSpotter several times as a short play. With a series of lower highs and lower lows this stock is down for the count.
Money flow is bearish and the Relative Strength Index (RSI) bends down at a steep slope while the cloud remains red. The trend line down is steep resistance as the stock is below all moving averages.
Target the low $20s but put in a stop at $33.
This provider of electronic health records technology was torpedoed in November, dropping like a stone in the water. A fall of more than 45% in a month was stunning, but there could be more downside to go. Yes, really! Indeed, this is an ideal spot for a short entry as the stock shows a bear flag.
Money flow remains a drag while the cloud is still red. The recent test of the 200-day moving average was a failure, so look for a move back to the low $40s but put in a stop at $69.
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.