The developer of investigational drugs for cancer and autoimmune disease had a miserable day last week after a nice surge up the prior week. The heavy volume on the down days tells the story here, and the stock is likely headed lower.
The Relative Strength Index (RSI) and moving average convergence divergence (MACD) have rolled over; a follow-through day down would probably take this stock down to the high teens, or the 100-day moving average.
A short here is good, but put in a stop at the 200-day moving average, the Wednesday high around $25.55.
The big retailer announced disappointing holiday sales last week. The huge volume surge on Wednesday had the sellers quite busy, briskly dumping the stock all day long. Notice that Target stopped at the 100-day moving average, where it launched in August 2018. But unless the stock can get it together there will be more selling and a bearish outcome.
If there is follow through then Target will head to the 200-day moving average, around the $98 area. Money flow is weak and moving average convergence divergence (MACD) has been on a sell signal since December.
If TGT falls below the 100-day moving average, then this is a short.
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.