Each week, we identify names that look bearish and could present interesting investment opportunities when shorting.
Using technical analysis of those stocks’ charts, and where appropriate, recent actions and ratings from TheStreet Quantum Ratings, we focused on three names.
While we won’t consider fundamental analysis, we hope this section will provide investors interested in stocks that are on the decline a good starting point for further research. about these names.
L3Harris continues to defend
L3Harris Technology Company (LHX) was recently downgraded to Organization with a C+ rating by TheStreet’s Number of ratings.
The defensive names have been quite strong lately, but this one has seriously fallen after a spectacular run in early October. Money flow is down and now decreasing and the moving average convergence divergence (MACD) is giving a sell signal while the Relative Strength Index (RSI) slopes and curves lower.
The recent stock rally has had little effect on L3Harris and the lower supports of that yellow trend may not hold this time around. Target $210 area, then drop to $200, but stop at $229.
Chico’s is outdated
Chico’s FAS Inc. (ONLY) was recently downgraded to Organization with a C rating by TheStreet’s Number of ratings.
The women’s clothing retailer has been showing strong volatility lately. It is now on its way down and the possible target is the $4 low. That’s not much of a return, but 20% off would be nice.
The moving average convergence divergence is a sell signal. The recent trend of trading volume is down and cash flow is down sharply. Place a stop at $7.20 and if this falls below $6, sell more.
James Hardie is not hearty
James Hardie Industries Inc. (JHX) was recently downgraded to Organization with a C+ rating by TheStreet’s Number of ratings. 
The manufacturer of fiber-cement wall and paneling products has been in a significant downtrend for months, with lower highs and lower lows all the way to teenagers. Even the market’s most recent rally has barely helped propel this stock up and it remains within this downtrend channel.
James Hardie’s stock is currently in the middle and starting to rise again. Money flow is weak and the RSI is pointing lower at a steep angle, which tells us that there is more to the downside. Targeting $13 area, put stop at $21.50 just in case.
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