Each week we identify names that look bearish and can offer interesting investment opportunities on the short side.
Using technical analysis of those stocks’ charts and, where appropriate, recent actions and numbers from TheStreet’s Quant Ratings, we focus on three 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.
Plug power does not seem connected
Plug Power Inc. (PLUG) was recently downgraded to Sell with a D+ rating by Quant Ratings from TheStreet.
One of the better fuel cell names of recent times, Plug Power has fallen sharply on very strong sales and it looks like the flip side isn’t over yet. Money flow is weak, while moving average convergence divergence (MACD) is on a sell signal.
There is simply nothing here to support the stock until the May lows are reached. That level is around $13, so a short here at $18.60 is a nice target for the May lows. Put a stop at $22.50 just in case. If that low drops in May, we’ll see PLUG take a flight into single digits.
Dominion Energy has run out of juice
Dominion Energy Inc. (D) was recently downgraded to Hold with a C+ rating by TheStreet’s Quant Ratings.
The electricity and natural gas supplier has been falling hard for about a month. The decline started in early September; now the stock is in a major downward spiral and no buyers in sight.
The cash flow shows the emphatic sales across the board. Relative strength is lower bending at a very steep angle; there seems to be more downside, if you can believe that! Support broke at the $72 level and there has been a waterfall move ever since. How about a short game here at $63, adding more to the position with a move up to $67 and targeting the $50 level. Put a stop at $65.
Bruker’s diagnosis is wrong
Bruker Corp. BRKR was recently downgraded to Hold with a C+ rating by TheStreet’s Quant Ratings.
The maker of scientific instruments and diagnostic tools has a very strange graphing. We don’t often see these V-patterns roll over so quickly, but that’s the case here.
Disappearing cash flow and a stagnation in relative strength plague the stock. Volume trends have strengthened and are leaning towards bearish, and the cloud is also red – predicting more downsides to come. There is some support here at the top of the V bottom, but not much more than that. Take a short here, stop at $58 and drive this to $45.
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