Keep an eye on those shaky stocks

 

Twitter (TWTR) shares have epitomized the “slope of hope” as bullish investors have tried to give the company and its leaders the benefit of every doubt. Despite this, the fundamentals continue to suffer — that includes anemic user growth — and Twitter stock remains in a long-term bearish trend.

twtr1

Downside Potential – 15-18% 

 

 

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Through all of the mediocrity it has been through, Gap (GPS) is sporting a 35% rally from its February lows .

Despite the price strength, however, the fundamentals are still too questionable to consider Gap stock a “buy.” Technical resistance, fundamental questions (the company posted a decline in monthly sales for February) and lackluster sentiment are the reasons that we thing this overbought stock will retrace back to the $26 level.

gap1.png

Potential Downside – 15% 

 

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To say that eBay (EBAY) is a shell of its former self would be an overstatement, but things are clearly not the same without PayPal Holdings Inc (PYPL). Online re-sellers are growing in numbers, pushing eBay into a larger crowd. Ebay stock has been locked in an intermediate-term bearish trend and will soon be considered a long-term bear as it breaks through the $22.50 level.

EBAY1

Potential Downside –  15-17%  

 

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Beverage companies in general have maintained relative strength against the market as investors have favored stocks from the consumer staples sector. This hasn’t been the case with Monster Beverage (MNST) stock, though, as shares have lagged the market and its peers.

The catch here is that 82% of the analysts covering the stock still have it ranked a buy, which means we’re more likely to see downgrades, adding more selling pressure.

Targeting  a retracement to the $120 level.

 

MONSTERPORT1

Potential Downside 10-13%

 

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Video game giant Activision Blizzard (ATVI) was on our bullish lists for all of 2015, but the cards have been reshuffled as the “crowd” has become too bullish on Activision Blizzard stock. As of the end of March, 95% of the analysts covering the stock had it ranked a buy, and short interest was near its lowest readings in the last two years.

Avoid stocks that are over-loved by the crowd, and that includes Activision Blizzard stock, which is why our outlook reflects a $28 price target.

 

ACTAVISION1

Potential Downside – 15% 

 

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The rally in oil prices has lifted all of the boats in the oil production and exploration harbor, which is a concern for when these higher prices begin to ebb.

Newfield Exploration (NFX) stock is roughly 60% higher over the last few weeks, putting it near the top for oversold stocks. With the stock’s 200-day moving average sitting as resistance at 33.22, we’re likely to see a short-term reversal that will target $28.

newfield1

 

Potential Downside – 15-18%

 

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At the moment of writing  J.Mason did not hold any of the above securities. 

J.Mason♦

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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