Bearish Bets: 3 Stocks You Should Consider Shorting This Week
These justrecently devalued names are showing both quantitative and technical degeneration.
By BOB LANG
Stocks quotes in this post: RH, MGA, TGH
Each week we recognize names that appearance bearish and might present intriguing investing chances on the brief side.
Using technical analysis of the charts of those stocks, and, when proper, current actions and grades from TheStreet’s Quant Ratings, we absolutelyno in on bearish-looking names.
While we will not be weighing in with essential analysis, we hope this piece will offer financiers interested in stocks on the method down a excellent beginning point to do evenmore research on the names.
RH (RH) , the previous Restoration Hardware, justrecently was reduced to Hold with a C+ ranking by TheStreet’s Quant Ratings.
Fresh off a bad revenues report, the high-end house décor merchant continues to relocation lower on high turnover. RH hasactually been penalized giventhat putting in a high last winterseason, and honestly the heavy selling in December was a excellent idea this stock would be reversing lower. Not even a 3-1 stock split statement is assisting this name.
Money circulation is weak and the rate action is bearish. Need I state more? The cloud is red and moving average merging divergence (MACD) is about to cross for a sell signal.
Target the $295 location, put in a stop at $350.
Magna International (MGA) justrecently was reduced to Hold with a C+ score by TheStreet’s Quant Ratings.
While the current relocation up in the stock of the vehicle provider was sharp, it was right into resistance (downtrend line). Money circulation is weak and the Relative Strength Index (RSI) is flexing lower, all bad qualities.
The cloud is red, the 20-day moving average has simply been declined and the March lows are in sight. We might see Magna make a run to the high $40s — that’s a excellent target location. Put in a stop at $66.
Textainer Group Holdings (TGH) justrecently was reduced to Hold with a C+ ranking by TheStreet’s Quant Ratings.
The stock of this holding business dealing in intermodal containers is range-bound however about to get unsightly. The pattern line was damaged the other day while MACD and cash circulation flashed a bearish indication. Notice the head-and-shoulders leading and now the break of the neckline — not excellent here.
The December lows are now in play; call it $32 or so. We believe the September lows around $30.60 are even a muchbetter target, however put in a stop at $38.50 simply in case.
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