Stock to Sell #2 – Autodesk (ADSK)
Autodesk (ADSK) is a leading provider of software for computer-aided design (CAD) that sells its products globally. It recently restructured its operation to support more cloud and mobile-based offerings. But weaker-than-expected global conditions, a significant loss of market share, and less-than-expected cost savings have had a negative impact on earnings.
The chart of ADSK appears to have an ominous head-and-shoulders forming. Further cause for concern occurred in late May when our proprietary internal indicator, the Collins-Bollinger Reversal (CBR), flashed a sell signal. Sell ADSK if it closes under the neckline of the head-and-shoulders at $36. The target for a decline is $31 or lower.