My Power Stocks System tracks the most volatile, liquid candidates for option trading or short-term stock trading each week…but along with those strong names, I uncover stocks setting up for downtrends too. You’ll probably recognize these well-known names, but they’re all flashing signs of a downturn.
I also mention the resistance levels of these stocks so you are aware of whether a downtrend is just starting or if it’s already established. And as we all know, stocks take the stairs up and the elevator down… so a volatility rating above 20 from my Power Stocks system should alert you to stocks that might surprise to the downside.
- Anheuser-Busch InBev NV (BUD) has broken down from an attempt to rally up. This is one of the most reliable signals on which to take bearish action. BUD shows resistance at $95 and fairly low volatility, rated 16. The stock closed at $87.24 Friday.
- Coca-Cola (KO) closed up 1% on Friday, but it’s still 5% below its $42 resistance. My system has rated it a problem stock, though volatility is low at 15.
- PepsiCo (PEP) is 2% below its resistance level, with a Friday close price of $80.13. Volatility is quite low at 11.
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