Each week we identify names that look bearish and may present interesting investing opportunities on the short side.
Using technical analysis of the charts of those stocks, and, when appropriate, recent actions and grades from TheStreet’s Quant Ratings, we zero in on three names.
While we will not be weighing in with fundamental analysis, we hope this piece will give investors interested in stocks on the way down a good starting point to do further homework on the names.
Cisco Systems Struggles
Cisco Systems Inc. (CSCO) recently was downgraded to Hold with a C+ rating by TheStreet’s Quant Ratings.
The networking equipment giant’s chart remains in a deep downtrend state. With lower highs and lower lows including a red cloud and poor money flow, it seems there is plenty more potential downside.
The Relative Strength (RSI) is weak, and any rally just takes it up to the 50 level, then the sellers hit it one more time. There is nothing that says “buy” here on the chart, and that becomes a problem for the bulls.
If short, put in a stop at $45 and ride this down to $38 or so.
Intrepid Potash Goes to Pot
Intrepid Potash Inc. (IPI) recently was downgraded to Hold with a C+ rating by TheStreet’s Quant Ratings.
Potash has been on fire this year, or at least during the first part of 2022. The stock of Intrepid Potash ran hard up to the $120 area but has come crashing down now, with lower highs and lower lows on the chart. There is really no support until the $40 area.
Breaking the 200-day moving average was bearish and it appears the buyers have abandoned Intrepid. The Relative Strength Index (RSI) is bending lower and the cloud is red; nothing bullish on this chart.
If short, put in a stop at $65 and ride this down to $37.
Shutterstock Sinks Again
Shutterstock Inc. (SSTK) recently was downgraded to Hold with a C+ rating by TheStreet’s Quant Ratings.
Shutterstock is a repeat offender here. We have seen this tech company appear more than once, and with lower highs and lower lows there seems to be nothing there to stop it from going lower.
Money flow is atrocious, the cloud is red and the volume levels are elevated into the summer, rising sharply on each down session. That is bearish and there is no disputing it.
If short put in a stop at $60 just in case and look for a target to cover around $45.
(Real Money contributor Bob Lang is co-portfolio manager of TheStreet’s Action Alerts PLUS. Want to be alerted before AAP buys or sells stocks? Learn more now. )