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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