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Bearish bets: 3 stocks you should consider shorting this week


Each week, we identify names that look bearish and could present interesting investment opportunities when shorting.

Use technical analysis of those stocks’ charts, and where appropriate, recent actions and ratings from TheStreet’s Quantity RatingWe focus 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.

Child’s play

Children’s Place (PLCE) was recently downgraded to Sell with a D+ rating of TheStreet’s Quantity Rating.

This retailer’s chart is brutal. With massive money flowing down and little support until the November low, Children’s Place is in trouble.

The Moving Averages Convergence (MACD) is still showing a sell signal while the money flow has just turned bearish and the slope of the Relative Strength Index (RSI) is steep and still in a downtrend. There are more downsides to capture here as the stock has just broken out of the uptrend line. So target the November low at $32 or so, put a stop at $42.

This is a real bearish chart.

Griffon is a dog

Griffon Corporation (GFF) was recently downgraded to Hold with a C+ rating by TheStreet’s Quantity Rating.

Griffon, a company that makes home and building products, has been in decline lately. The money flow is weak and the MACD is still showing sell signal.

The recent bear flag was generated with low turnover — which we would like to see in order to place a short position. This is an ideal, or low-risk entry point.

With the cloud currently in red, there is little hope for this stock to move higher, so we will set a short-term target of $28. Stop at $35.

Almost no top

Primordial Water (PRMW) was recently downgraded to Hold with a C+ rating by TheStreet’s Quantity Rating.

Primo Water has a well-defined downtrend, with lower highs and lower lows. Support appears at a gap around $13 or so, MACD is giving a sell signal and the money flow is turning to a downtrend.

The cloud is also red, but there could be a bit of support around the 200-day moving average, where it bounced off earlier this week. Overall, this looks like a move to the $12 area is imminent.

Place a stop at $15.40 as a precaution.

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