Weekly Trifecta Shares identifies names that look bearish and that can offer interesting investment opportunities on the short side.
Using technical analysis of those stocks’ charts, and, where appropriate, TheStreet’s recent actions and numbers Number of reviews, we focus on five names.
While we won’t get into fundamental analysis, we hope this piece will give investors interested in stocks on their way down a good starting point to do further homework on the names.
The provider of home care equipment and medical supplies has fallen sharply and has a clear downward trend channel. This stock is fairly safe to enter as a short game; the indicators are not quite bearish, but the price action certainly is.
The cloud is red and the price is well below the 200-day moving average (arrow). The move to that moving average in June was thoroughly rejected.
The Relative Strength Index (RSI) is showing lower highs and lower highs, and the recent lows of August should at least be tested. However, a transition into the teens can also happen, so focus on that area, but use a stop at $27.25 just in case.
Shares of the cable programming company are plummeting, showing some pretty bearish cash flow. The Relative Strength Index (RSI) is weak and turning bearish.
AMCX looks poised to move further down towards support, around the $44 area, but that may not hold the stock for long; more important levels have fallen into the low $40s.
Look for that area to fill, but put an aggressive stop at $54.
This commentary is an excerpt from “5 Bearish Bets”, a weekly feature sent to Trifecta Stocks subscribers. Click here to learn more about this portfolio, trading ideas and market commentary product.
Want to know what other stocks we think are looking good this week and how to play them? click here for a trial subscription to Trifecta Stocks and receive “Bearish Bets” every week!
— Bob Lang and Chris Versace are co-portfolio managers of Trifecta Stocks.
Receive an email alert every time I write a real money article. Click “+Follow” next to my byline for this article.