Stock to Sell #2 – Celanese Corp. (NYSE:CE)
Celanese Corp. (NYSE:CE) is a producer of industrial chemicals, engineered plastics and acetate fibers. Because of its international nature, it could be highly sensitive to a global recession. Higher-than-expected raw material costs add to its risk.
The stock is in an intermediate downtrend, but the recent break from its 200-day moving average on a breakaway gap is a bad technical signal. Its near-term target is $33, but it could be heading into a long-term bear market. Sell CE at the market.