Stocks to Sell #2: Symantec (SYMC)
Click to Enlarge With the broader market appearing to be at an inflection point, this isn’t the time to take chances on stocks that are in potentially dangerous technical positions.
Exhibit A on this front is the security software provider Symantec (SYMC). There’s nothing wrong with the company fundamentally — earnings estimates are on track and it’s trading at a very reasonable 12.1 times forward earnings. However, the stock price — $23.30 at Tuesday’s close — is sitting near long-standing support at about $22.
This wouldn’t necessarily be cause for concern on its own, but also note that the 200-day moving average has begun to turn lower — a clear sign that momentum is heading in the wrong direction.
Symantec reports after the bell on Wednesday, Jan. 29.