Stock to Sell #1 – Activision Blizzard (ATVI)
Activision Blizzard (NASDAQ:ATVI) publishes computer games and other interactive entertainment software. Analysts are projecting a decline in the industry’s growth rate, and with the possibility of a continuation of the slowdown in economic growth, product delays, and signs that the industry is oversaturated with games, the stock is overpriced.
ATVI is currently sitting at the top of a bear market channel and just below its 200-day moving average. This is normally the ideal place to sell short, but use a buy-stop order at $12.20 to protect against an upside breakout. The downside target is $9.75.
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