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.
Azure Power Global
This developer of solar power plants in India has a defined downtrend channel of lower highs and lower lows, not to mention a bearish money flow pattern and ugly Relative Strength Index (RSI).
With stocks in this group flying high you would think most would be going higher, but not Azure. That's a big, bearish sign, and notice the higher turnover bars recently on the down sessions.
There is more down in store; aim for the support level around $26, put in a stop at $40 just in case.
This credit data provider made a nice move to end 2020 on a high note, but since then has been faltering badly. With higher volume levels on the downside and a bearish money flow it seems distribution has hit this stock pretty hard. Moving Average Convergence Divergence (MACD) pretty much leads the way here; the signal came in at end of December and foretold the downside to come.
Another crossover has occurred -- that should be heeded. The 100-day moving average is support here, but the 200-day moving average is better support at $165 or so.
Look to ride this stock down around the $150 mark.
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.
Want to find out the other stocks we think look good short this week and how to play them? Click here for a trial subscription to Trifecta Stocks and get "Bearish Bets" each week!
-- Bob Lang and Chris Versace are co-portfolio managers of Trifecta Stocks.