Bearish Bets: Hewlett Packard and Other Big Names Trending Down
Moderate earnings beats haven’t been enough to push these names higher, but there is some downside opportunity.
You've reached your free article limit
You've read 0 of 1 free Pro articles.
Ciena Continues its Move Down the Bearish Channel
After reporting its latest quarter on Thursday morning, we saw Ciena (CIEN) just get smashed. The company put up some decent numbers but they just were not good enough to satisfy investors. But with the strong downtrend channel of lower highs and lower lows, it was not hard to see this move coming. Further, we see more downside as the downtrend channel extends even further.
MACD is now on a sell signal, money flow remains bearish and has been for well over a month. Relative strength is almost oversold but not quite, remember that is a condition and not a signal. Trading below the 200-day MA is not healthy, and we see some modest support at the $270ish level then better support at $220. Let’s target these spots, put in a stop at $350 just in case.
Victoria’s Secret Chart Is Not Looking Very Sexy
Specific retail names have been hit/miss lately, with strong numbers from firms like The Gap, which have been unable to hold strong moves, to firms like Abercrombie & Fitch, which have also posted robust earnings and have been able to hold up nicely.
Victoria’s Secret (VSXY) is an enigma. Sometimes the stock performs well when it appears the challenges are coming up, other times, Victoria’s Secret does not play right when it seems the comparisons or the environment is easy. But we are not here to understand, we look at the chart and make a determination.
The VSXY chart is now bearish. Lower highs, lower lows tell us this is not the time to be long this stock. MACD is on a full-fledged sell signal and money flow is very negative. RSI is spinning out of control, and volume trends are now bearish. Let’s target the 200-day MA at $63 or so and then lower to the $55 area before we see a reversal. Stop out at $85 just in case.
Nothing Bullish in the Chart of Hewlett Packard Enterprise
When it rains, it pours. The downtrend channel for Hewlett Packard (HPE) is alive and well, nothing seems to be stopping this stock from going lower. Money flow is weak and getting worse, MACD on a sell signal and check out the big volume days, where heavy turnover tells us the big money is fleeing. That is not a sign of confidence. RSI is bending lower too, and is not even to an oversold reading yet.
We could see a bit of support way down in the low 30s, but that could take some time. If the trend channel stays active, we could fill the gap at 37 or so and continue lower. Let’s target $32 area, put in a stop at $55 just in case.
