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.
Tempur Sealy Sags
Tempur Sealy International Inc. (TPX) recently was downgraded to Hold with a C+ rating by TheStreet’s Quant Ratings.
The mattress maker has been in a miserable downtrend for months, with lower high and lower lows and its momentum indicators signaling more downside to come. Money flow has been negative for a bit and remains bearish.
The Relative Strength Index (RSI) cannot seem to get over 50 and there is a bearish divergence here with the price action. A rally up last week into resistance shows rejection here.
Look for a move eventually into the mid-teens, but put in a stop at $31 just in case.
Logitech Limps Along
Logitech International (LOGI) recently was downgraded to Hold with a C+ rating by TheStreet’s Quant Ratings.
The producer of computer peripheral equipment and gaming gear also shows a bearish chart. The stock fell through support at $70 when it gapped lower in mid-April. Bids are just hard to find here, with lower highs and lower lows.
Moving average convergence divergence (MACD) is on a sell signal and money flow is weak. Also, the Relative Strength Index bends downward and is steep. There is nothing bullish on this chart.
Look for a move down to $50 or so, but put in a stop at $71.
Carrier Global Feels a Chill
Carrier Global Corp. (CARR) recently was downgraded to Hold with a C rating by TheStreet’s Quant Ratings.
The maker of heating and air conditioning equipment is in a miserable downtrend. MACD is on a sell signal and money flow continues bearish. Nothing is positive on the chart with lower highs and lower lows. The RSI remains troubling, too, with a steep slope downward.
We could see Carrier make a run to the $20s; hold for that, but put in a stop at $42.
(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. )