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.
- Valero (NYSE:VLO) shows resistance at $44, and is trading well below that, around $40. Volatility for this stock is well above average, and the downtrend is already well-established.
- Apache Corp. (NYSE:APA) Apache stock has broken down from an attempt to rally up. This is one of the most reliable signals on which to take action.
- Exxon (NYSE:XOM) XOM reports this week, and my scanners are showing that it also merits a sell. Volatility is rated 8, which is low, but this likely means the stock will grind down slowly rather than suddenly. Resistance for XOM is $89.
- Halliburton (NYSE:HAL) shows the same pattern as APA, making it a reconfirmed sell. Resistance for the stock is $41, and volatility is above-average.
- Schlumberger (NYSE:SLB) shows resistance at $77, and volatility rated 22. This is an average rating meaning that the stock does not surprise to the up- or downside more than other stocks, but the downtrend is already about $8 below resistance.
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