Each week we determine names that look bearish and will current attention-grabbing investing alternatives on the brief aspect.
Using technical evaluation of the charts of these shares, and, when applicable, latest actions and grades from TheRoad’s Quant Ratings, we zero in on three names.
While we won’t be weighing in with elementary evaluation, we hope this piece will give traders excited about shares on the way in which down start line to do additional homework on the names.
Ciena Struggles
Ciena Corp. (CIEN) just lately was downgraded to Hold with a C ranking by TheRoad’s Quant Ratings.
This supplier of community {hardware}, software program and companies for communications networks has fallen exhausting the final couple weeks after poor earnings and a slew of promoting. Notice the Relative Strength Index (RSI) fell from 70 to 30 within the blink of an eye fixed. That spells hassle, however an oversold bounce is due.
Moving common convergence divergence (MACD) is on a promote sign and the cloud as soon as once more turned purple. Money movement is bearish, so put in a brief right here at present ranges; goal the low $30s however put in a cease at $50.
Morningstar Isn’t Shining
Morningstar Inc. (MORN) just lately was downgraded to Hold with a C+ ranking by TheRoad’s Quant Ratings.
The supplier of unbiased funding analysis has been battling greater quantity on the promoting of late. Money movement has shrunken significantly and the downtrend channel is in place. We may see a maintain round $220 or so, however that may be asking a lot.
MACD is on a promote sign right here, so placed on a brief right here and goal $200. Put in a cease at $255 simply in case.
Open Text Keeps Closing Down
Open Text Corp. (OTEX) just lately was downgraded to Hold with a C+ ranking by TheRoad’s Quant Ratings.
The supplier of knowledge administration software program gapped down just lately and is a downward spiral. You may suppose there may be little left to go on the draw back, however there actually is a few meat left on the bone.
Money movement is uber bearish and the RSI is bearish with a close to washout. That will not be a purchase sign. There are very sturdy quantity developments and naturally they’re bearish, with heavy distribution from the latest hole down. Initiate a small brief right here and add extra on a bump greater. Target the $20 space, place a cease at $34.
(Real Money contributor Bob Lang is co-portfolio supervisor of TheRoad’s Action Alerts PLUS. Want to be alerted earlier than AAP buys or sells shares? Learn extra now.)
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