Trading Sucky Stocks

Yes that is right even after the melt up Tuesday these three stocks are still set up to move lower. Down to spare change, turning the channel and fizzling out. Lets take a look. Premium content in bold.

Coinstar, $CSTR

Coinstar, $CSTR, printed a Shooting Star on Friday and confirmed it lower on Monday. Tuesday it did print a candle with a long tail but since the downturn just started it carries a bit less weight. The Relative Strength Index (RSI) is heading lower off of a near touch at 70 and the Moving Average Convergence Divergence (MACD) is fading. Both support more downside. If it continues under the September peak it can fade another $3 and possibly more. Enter short on move under 49.45, using 50 as a stop. Support comes first at 47.47 – 47.75 and then 46.50. Take off 1/3 at first support and move stop to 48.25. At 46.50 take another 1/3 off and tighten stop to 47.25. Take the rest off at 38 if it gets that far, using a 50 cent trailing stop as it moves under 46.25.

CTC Media, $CTCM

CTC Media, $CTCM, also confirmed a Shooting Star lower Monday but jumped back higher Tuesday. The jump launched from the previous gap on the down move under 11. But the bounce did not reverse the negative view shown in the RSI and the MACD. Below Tuesday’s low it has room to go a lot lower. Enter short on a move below 10.62 with a stop at 10.95. Take off 1/3 at support of 9.76 and tighten the stop to 10.00. At the next support at 9.20 and tighten again to 9.50. Take off the rest at 8.46 with a trail stop of 25 cents as it moves under 9.10.

SodaStream International, $SODA

SodaStream International, $SODA, is hanging onto support of the previous low at 32.50 by a Hammer. If that is not confirmed by a move lower then there is some nearby support at 30 and then it can get ugly. The RSI and MACD support the ugly case. Enter short on a move under 32.50 using 32.75 as a stop and take 1/3 off at 30, tightening the stop to 30.50. As it moves under 30 convert it to a 50 cent trailing stop and take off another 1/3 at 27.4 , tightening trail there to 25 cents. If it gap fills to 25 from there take off the rest.

If you want to know how I wold trade these names and for more ideas and deeper analysis, use the Get Premium button above. As always you can see details of individual charts and more on my StockTwits feed and on chartly.

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The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

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