3 Energy Stocks to Sell: Baker Hughes (BHI)
Baker Hughes Incorporated (NYSE:BHI) kicks us off with a delightful little downtrend. Increasing momentum accompanied its last downswing, showing that bearish conviction is growing. Last week’s Fed-induced rally carried BHI stock right back to its declining 20-day moving average. It’s an area that has halted many of its prior advances. Friday topped off the week with a large topping tail, or upper wick. This candlestick formation reveals the downside reversal may have already begun.
If BHI breaks below Friday’s low ($58.33), consider shorting the stock with a stop-loss at $60. You option traders are out of luck. Though BHI has options available, they are extremely illiquid so steer clear.