NEW YORK (TheStreet) -- This market has a number of stocks with strong potential on the downside. Here are four to watch.
The Netherlands-based business marketing services company broke down hard at the end of July and has been in a rising wedge for six-to-seven weeks now. It has been contained by resistance at the declining top line, and is right near the apex of the wedge. If this breaks, it could be a quick, ugly down-move towards lateral support in the low $60's.
Deckers Outdoor, a provider of apparel footwear and accessories, continues to break down. After a massive top broke earlier this year, the stock based for more than six months. It then broke down and snapped back in August, broke down again earlier this month and rallied back to resistance, and has broken down again. This time, however, it broken through lateral support, and looks headed for the bottom of the channel near $50.
ManpowerGroup, a staffing and outsourcing services company, rolled over in August, formed a rising wedge, and in the last week has broken down from the wedge. Look for a retest of the August lows around $81, and if it gets through that, it could head down towards the channel bottom near $76.
Qualys, which provides cloud security solutions, has been stair-stepping its way down its channel since May. In recent days it has broken down from a rising wedge, breaking below key support at $30 on Friday. It could rapidly fall to recent lows near $28 and then $25.
This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.