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 a downtrend is likely on the way, especially with current market conditions.
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.
- Air Products & Chemicals (NYSE:APD) has has broken down from an attempt to rally up. This is one of the most reliable signals on which to take action. The stock is showing resistance at $87 and volatility at 12, a low rating that indicates the downtrend will take a while to play out.
- Tyco Intl. (NYSE:TYC) has resistance at $34 and volatility of 15, slightly below average, which means the stock is likely to keep grinding lower rather than plummeting suddenly.
- Dow Chemical (NYSE:DOW) has resistance at $32 and average volatility at 22.
- DuPont (NYSE:DD) also has low volatility at 12, and is trading right around resistance at $49.
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