by Sam Collins | February 26, 2013 1:55 am
Celanese Corp. (NYSE:CE) — This company produces industrial chemicals, engineered plastics and acetate fibers. Because of its international nature, it could be highly sensitive to a global recession. According to S&P, the company could be hurt by higher-than-expected raw material costs in Europe, and a decline in demand for acetyls, thanks to the government’s austerity measures.
The stock rallied along with the market, but has formed a bearish horn, and on Monday, reversed down through the support line at $46 and its 50-day moving average at $46.59. MACD is flashing a sell signal.
Investors should sell CE if they own it, while traders can sell short with a price objective of $40. Short selling is a speculative technique that is not suitable for many investors. Short sellers should use stop-loss orders to protect against unlimited losses. Also, check with your broker for any unusual margin requirements and the ability to borrow the stock.
Source URL: https://investorplace.com/2013/02/trade-of-the-day-celanese-corp-nyse-ce-4/
Short URL: http://invstplc.com/1fwu3Xr
Copyright ©2017 InvestorPlace Media, LLC. All rights reserved. 700 Indian Springs Drive, Lancaster, PA 17601.