Each week we identify names that look bearish and may present attractive investment opportunities on the short side.
Using technical analysis of these stock charts and, where available, TheStreet’s recent stock and ratings Quantitative assessmentswe focus on three names.
While we’re not going to weigh in on fundamental analysis, we hope this article gives investors interested in falling stocks a good starting point to do some additional research on the names.
Children’s place (PLCE) was recently downgraded to Sell with a D+ rating by TheStreet’s Quantitative assessments.
This retailer’s chart is atrocious. With significant downside money flow and little support through November lows, Children’s Place is struggling.
The Moving Average Convergence (MACD) is still on a sell signal while the money flow has just turned bearish, and the slope of the Relative Strength Index (RSI) is steep and remains bearish. There are more downsides to grab here, as the stock just crossed an uptrend line. So target those November lows around $32, stop at $42.
This is a really bearish chart.
Griffin is a dog
Griffin Corp. (GFF) was recently downgraded to Plug with a C+ rating by TheStreet’s Quantitative assessments.
Griffon, a home and building products company, has recently taken a dive. The money flow is weak and the MACD remains on a sell signal.
The recent bearish flag was created on a low turnover rate – which we like to see in order to go short. This is an ideal location or low risk entry point.
With the cloud now red, there is little hope for this stock to soar higher, so we would set a target at $28 for a short sale. Stop at $35.
Barely the top
First Water (PMRW) was recently downgraded to Plug with a C+ rating by TheStreet’s Quantitative assessments.
Primo Water has a well-defined downtrend, with lower highs and lower lows. Support comes in at the gap around $13 or so, MACD is on a sell signal and money flow just turns bearish.
The cloud is also red, but there could be some support around the 200-day moving average, where it bounced earlier this week. All in all, it looks like a move to the $12 area is imminent.
Stop at $15.40 just in case.
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