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5 Toxic Tech Stocks You Should Sell in March


Last up is South Korean telco KT (KT - Get Report), a stock that looks a lot like the setup in Taiwan Semiconductor, albeit more developed. Like TSM, KT had been in an uptrend for much of the final two quarter of 2012, only to see its uptrend support line get broken back in December. Once that happened, sellers were definitively in control of shares.

And barring a bull trap back in January, this stock has continued to trade predictably within its new downtrending channel. If you're looking for an opportunity to sell, now looks pretty good - shares are just coming off of a bounce off of trendline resistance, which means that they've got the furthest to move down the channel before catching a bid.

Here again, momentum adds some extra confirmation to this downside trade. RSI has been in a well-defined downtrend since well before KT's price broke down, and until that RSI trendline gets broken, it's unlikely we'll see the downtrend in shares unwind. If you're looking for an opportunity to jump into large-cap Asian names after the drama still unfolding in the Korean Peninsula plays out, one look at this chart reminds us that it's clearly far too early to be a buyer here.

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.


Follow Stockpickr on Twitter and become a fan on Facebook.

At the time of publication, author had no positions in stocks mentioned.

Jonas Elmerraji, CMT, is a senior market analyst at Agora Financial in Baltimore and a contributor to
TheStreet . Before that, he managed a portfolio of stocks for an investment advisory returned 15% in 2008. He has been featured in Forbes , Investor's Business Daily , and on Jonas holds a degree in financial economics from UMBC and the Chartered Market Technician designation.
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ADI $49.64 0.00%
ATVI $28.12 0.00%
FB $102.01 0.00%
KT $11.82 0.00%
TSM $22.24 0.00%


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