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.
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.
- Honeywell (NYSE:HON) HON has been trending up all year, and is due for a correction. Volatility for this stock is rated 11—well below the average of 20, so the move down will likely not be a sudden one.
- IBM (NYSE:IBM) IBM lost about 8% on Friday, kicking off the downtrend. Resistance for the stock is at $208, and volatility is rated 13.
- NCR Corp. (NYSE:NCR) NCR Corp. has been gradually dipping lower all last week. Resistance for the stock is at $28, and it has average volatility (rated 20).
- Dell (NASDAQ:DELL) Dell is trading just below its resistance level of $14. Volatility for the stock is above average at 29.
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