Happy Thursday! I hope you're having a great week so far. I wanted to highlight three stocks to watch for additional potential downside. These are both technically and fundamentally weak, and we're in a challenging macro environment. So I favor these as short trades I will put on into any broader market strength.
Arrowhead Pharmaceuticals looks like it's set for additional downside. The stock has crossed below all major moving averages. I would target a downside price of $27.50, and cover if shares break above the MA(20) on a daily closing basis.
Methode Electronics broke down from a recent uptrend, is below all major moving averages, and appears set for additional weakness. I would look to cover at $34.20 and I would also get out if we see a close above the MA(50).
Nu Skin looks like it's set for additional downside. I'm looking at the weekly chart here to show just how much additional downside may be possible given the major breakdown in progress. I would target $27.21 as a downside target and I would look to stop out with a close above $40.50.
The time horizon for these trades would be 6-8 weeks -- or a swing trade time frame.