Each week, we identify names that look bearish and could present interesting short-term investment opportunities.
Using technical analysis of the charts of those stocks, and where appropriate, recent actions and scores from TheStreet’s Quantum Ratings, we select three names.
While we won’t be focusing on fundamental analysis, we hope this section will provide investors interested in stocks on the way down a good starting point to do their name homework. .
Taiwan Semiconductor Sags
Taiwan Semiconductor Manufacturing Co.TSM) was recently downgraded to Organization with a C+ rating by TheStreet’s Quantity Rating.
The big Taiwanese chip maker has had better days. Earlier this year, the stock was over $100. But with the slide in tech stocks and falling demand, Taiwan Semi remains a stock sold by large institutions.
The chart shows lower highs and lower lows while selling. The recent pull up towards the 50-day moving average is simply a bearish flag. Money flow is non-existent and there could be a major breakout to the October lows – it’s all down here. If short, target $50 area, but stop at $75 just in case. The Relative Strength Index (RSI) has many downsides in the tank.
Allegiant Travel reduces altitude
Allegiant Travel Co. (ALGT) was recently downgraded to Sell with a D rating by TheStreet’s Quantity Rating.
The airline re-offended and has been showing lower highs and lower lows for months. From highs around $175 back here in the spring, this stock is a disaster.
The cloud is still strong and pointed lower. The recent pull higher is a bearish flag and a run up to resistance. There’s no reason to buy stock here, but a short opportunity is within reach. If short, target $60 zone, stop at $85.
Edwards Lifesciences is not alive
Edwards Lifesciences Corp. (EW) was recently downgraded to Organization with a C+ rating by TheStreet’s Quantity Rating.
The maker of critical care and surgical monitoring equipment was shut down earlier this month in large numbers and barely budged. This tells us the buyer did not receive the name and there is a high probability of another sale.
The money flow is negative and the moving average convergence divergence (MACD) has crossed, giving a sell signal. The RSI is moving sideways with the oversold indicators (they can stay that way for a long time). Use this recent power to add a short play. Targeting $62 area, put stock at $78.
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