Five Stocks to Stay Away From this June

Five Stocks to Stay Away From this June
Five Stocks to Stay Away From this June

Even as the market in the U.S. is correcting, most stocks do not look corrective currently. The stock market’s so-called slow season this summer has just arrived, so it is best to drop off some stocks, this month, which can prove toxic for your financial health. These companies in no way are going bankrupt, but the technical analysis reports depict the findings about some worst positioned stocks that you should stay away from. Technical analysis helps in quantifying qualitative factors, that are interpreted based on the price actions and trends a stock follows.

Analysts believe that Asia is somehow the best place to invest in stocks, veiling within it ample potential. Therefore, the stocks, which you should drop off this month, are:

Seaboard: This is an agribusiness and ocean transportation company, which is presently showing a descending triangle and a downtrending resistance level for the price action. Bouncing amid the two technical price levels, it might be squeezed closer to a breakdown below support. High price and relative lack of volume and the ongoing testing support for seaboard is something that must be kept a close eye on.

Universal Display: Currently it has its horizontal support at USD28, below which it shows sell signals for the share. The breakdown below USD29 gets crucial and the momentum calculated by the 14-day relative strength index, adds further to the setup. This stock since the beginning of the pattern has shown a downtrend, enhancing the breakdown potential for the stock.

Cenovus Energy: Currently stuck in a downtrending pattern, most analysts recommend keeping a tight defensive stop for this in place.

Yamana Gold: A $9 billion gold manufacturer, Yamana Gold has lost more than 30% of its market capitalization. The same made lower lows in the mid of May, when spot gold bounced off support. The stock hit around 60, somewhat in front of each trend line bounce in Yamana Gold. It is recommended to keep check of the RSI level, which can act as the early warning sign for any trend reversal.

Procter & Gamble: Currently depicting a double dip pattern, any trader looking of entering a position in P&G must wait until it establishes support again. Currently non-toxic, but unanimously, this stock is much closer to that level.