Delete This Software Stock From Your Portfolio Now

by Sam Collins | August 21, 2013 1:23 am

Autodesk (ADSK[1]) — This design software and services company operates worldwide and is a leading provider of software for computer-aided design (CAD). It has recently restructured its operations 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 stock broke down from an ominous head-and-shoulders formation in early June, falling to $33. A reaction rally was thwarted in July when its 50-day moving average crossed through its 200-day moving average. This is called a “death cross” and almost always leads to a substantial decline.

Sell ADSK at the market or short it with an objective of $30.

08 20 13 adsk 300x187 Delete This Software Stock From Your Portfolio Now
Click to Enlarge

chart key 300x84 Delete This Software Stock From Your Portfolio Now[2]

Endnotes:
  1. ADSK: http://studio-5.financialcontent.com/investplace/quote?Symbol=ADSK
  2. [Image]: http://investorplace.com/wp-content/uploads/2013/05/chart-key.gif

Source URL: http://investorplace.com/2013/08/trade-of-the-day-autodesk-adsk/
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