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.
Park Hotels Checks In as a Short
The hotel and resort REIT has been in a miserable downtrend for months, with lower highs and lower lows. It finally may have poked its head above the longstanding downtrend line. However, this just might be the spot to add a short; we like to put on a position at a low-risk entry point, which is right here.
Money flow is weak and the Relative Strength Index (RSI) seems to be having trouble; also, the cloud is still red. Volume trends are bearish, too, and with the move up last Wednesday it could be right back down, and into single digits. Put in a stop at $15, ride this down to $8.
Altus Power Runs Out of Juice
The downtrend channel of the clean electrification company's chart is well-defined, with lower highs and lower lows as the stock makes a run toward the May lows.
Money flow is extremely poor and bearish while the RSI is bending lower at a steep slope. That tells us this stock is performing badly and there is more down to come. Moving average convergence divergence (MACD) is on a longstanding sell signal, and while the stock is down plenty there is more to go. Target the $4 area, put in a stop at $12.
Huntington Ingalls Is Listing
The builder of military ships looks ready to take the next leg lower. RSI is extremely poor, money flow is bearish and MACD is still on a sell signal.
The uptrend line is quite close to the price here, and if that falls there are plenty of downside targets in sight. The cloud is also red, indicating the trend is still bearish even as the stock started to rally up. Let's get a short going here; target the $210 area, put in a stop at $240 just in case.