Each week we identify 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 three 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.
Tesla Isn't Charged Up
Tesla Inc. (TSLA) is rated Hold with a C rating by TheStreet's Quant Ratings.
The electric vehicle maker really has hit a bump in the road. The chart is atrocious and simply looks to have more downside.
The indicators made a feeble attempt to turn upward, but now have been turned back. The price action also is bearish; notice the price hit a resistance level and retreated in a hurry. That is a move we see continuing here. The cloud is red as well. With a volatile name such as Tesla, use a tight stop at $136, target the $105 area.
Qualcomm Inc. (QCOM) is rated Buy with a B rating by TheStreet's Quant Ratings.
The big Q remains under pressure. The stock of this wireless technology giant really has been pounded over the past year on strong turnover. That tells us big institutions are selling Qualcomm on every rally attempt.
The downtrend line is drawn and intact, and the Relative Strength Index (RSI) is starting to roll over. Support comes in around $107 or so -- that's the target area for a short trade, but put in a stop at $125 just in case.
Amgen Inc. (AMGN) is rated Buy with a B rating by TheStreet's Quant Ratings.
One of the better Dow performers in 2022, this biotech giant started struggling in the middle part of November after it fell sharply on heavy turnover. Since then, we've seen lower highs and lower lows with pretty strong volume days on the down sessions.
Moving average convergence divergence (MACD) is rolling over and money flow is pushing bearish, with the RSI bending lower at a steep angle. There is plenty of room to the 200-day moving average and beyond, so target the $245 area (fills a gap), but put in a stop at $275.