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.
This provider of digital payment technology was already on our list; the flow of money and the price trend have clearly fallen. High volume on the downside at the end of June saw some capitulation sales, but the stock doesn’t seem to be able to get out of its own way.
Below the major moving averages when markets make new highs, it’s not where the bulls like it; the January lows are charity at the $240 level.
Put a stop at $270 if you are short at $255 or so.
The beer, wine and spirits producer posted strong gains last week, but that was not enough to attract buyers. Maybe they buy seltzer and liquor, but they don’t buy the stock.
Money flow is very poor and the price is about to break the June support, which is big. The 200-day moving average is key here and may be tested soon; that’s a charity for $217.
The moving average convergence divergence (MACD) is on a sell signal. Put a stop at $232.
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.
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