Celanese Corp. (NYSE:CE) — Because of its international nature, this producer of industrial chemicals, engineered plastics and acetate fibers could be highly sensitive to a global recession. Higher-than-expected raw material costs add to its risk.
The stock is in a bear market consolidation following a breakdown from its 200-day moving average (MA) in June, and a death cross (50-day MA crossed through 200-day MA), also in June.
On Tuesday, our internal indicator, the Collins-Bollinger Reversal (CBR), flashed a sell signal, the second in a month, and the stochastic is turning down. Its recent rebound to near its bear market resistance provides sellers with an excellent opportunity to liquidate. Its near-term downside target is $33, but it could be headed even lower. Sell CE at the market.