Like most of the other names on this list, it's been a tough year for shares of Sina (SINA). The Chinese social media network has slid more than 7% so far this year, underperforming the S&P 500 by more than 17% over that time period. And Sina looks pointed lower this summer.
Shares have been in a downtrending channel since back in March, making an orderly decline as more and more investors decide to unload their positions in this stock. One important thing to remember about downtrends (unlike uptrends) is that they can occur for two reasons: either people hate the stock (and want to sell) or people don't care about the stock (and don't want to buy). The declining volume over the course of the downtrend points to the latter.
The fact that shares broke down below an important former support level at around $50 indicates that any previous pockets of buying pressure have been taken out by what's been going on in shares. Traders looking for a shorting opportunity in Sina should look to sell a bounce lower off of trendline resistance. Just keep a tight stop.To see this week's trades in action, check out the Technical Setups for the Week portfolio on Stockpickr. -- Written by Jonas Elmerraji in Baltimore.
Twitter and become a fan on Facebook.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV