Earlier this week we took at a look at five high-flying stocks with room to go, and we now want to take a look at a different set of stocks, which are now flashing major warnings signs.
When looking for stocks to avoid, limit our exposure to, or sell, the first place to look is at the technical analysis. While some traders prefer to focus on company’s fundamentals, technical analysis is an important tool. Since so many traders believe in technical analysis, and it can often tell the story of Wall Street’s overall opinion of a stock.
Looking at a stock’s short and long-term trends can paint a very accurate picture of Wall Street’s sentiment, and should always be taken into account when considering whether or not to jump into a stock.
The following five stocks are all flashing major warning signs that should prevent potential investors from buying into the stock, or offer a red flag for current shareholders.
As always, do your own homework, but if you have long positions in any of the following stocks, you should evaluate your position and decide whether or not now would be a good time to limit your exposure and look for better value elsewhere.