Stock to Sell #2 – Celanese Corp. (CE)
Celanese Corp. (NYSE:CE) is a producer of industrial chemicals, engineered plastics and acetate fibers. Because of its international nature, it could be very sensitive to a global recession. Higher-than-expected raw material costs add to its risk.
The stock is in bear market consolidation following a breakdown from its 200-day moving average and death cross (50-day moving average crossed through 200-day moving average) in June.
Its recent rebound to close to its bear market resistance provides sellers with an excellent opportunity to liquidate. The near-term downside target is $33, but it could be headed even lower. Sell CE at the market.