Celanese Appears Headed Into Long-term Bear Market

Rally failed to change stock's negative momentum

   

Celanese Appears Headed Into Long-term Bear Market

Celanese Corp. (NYSE:CE) – This producer of industrial chemicals, engineered plastics and acetate fibers was featured on our list of “Top 6 Stocks to Sell in June.”

Because of its international nature, it could be highly sensitive to a global recession. Soft European markets impacted Q1 results, which came in below analysts’ expectations. And 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. The three-day market rally resulted in a close of the gap but failed to change the stock’s momentum, which is still negative. CE should now resume its downward slide.

Its near-term target is $33, but it could be heading into a long-term bear market. Sell or short CE at the market.

Short-selling is a highly speculative technique. As with all short sales, check with your broker for special requirements and protect the position with a stop-loss order.

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chart key Celanese Appears Headed Into Long term Bear Market


Article printed from InvestorPlace Media, http://investorplace.com/2012/06/trade-of-the-day-celanese-corp-nyse-ce/.

©2014 InvestorPlace Media, LLC

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