Shorting HLF (Herbalife)
Over the past decade Herbalife has been a contentious stock for reasons we encourage readers to research if interested.
Basically it's a multi-level-marketing company selling herbal supplements.
Sticking to charts, as we normally do, we see compelling reasons to be short.
On a long-term view we see price peaks have been along a line of resistance stretching back a remarkable 14 years:
On closer view, we see a 15-month up trend recently broken:
Not shown on these charts is that HLF has fallen below its 200-day moving average and is at a nearly 4-month low despite equities overall having enjoyed one of history's greatest 3-month rallies to start this year.
We're already short Herbalife at an average of $57 and are encouraged in our position today that makrets have bounced big, yet as of this writing HLF is down 2% on the day.
It should perform even worse once the next bear market leg in global stocks soon resumes.
It's trading at $53.90 and we suggest covering should it cross above $60.00
Basically it's a multi-level-marketing company selling herbal supplements.
Sticking to charts, as we normally do, we see compelling reasons to be short.
On a long-term view we see price peaks have been along a line of resistance stretching back a remarkable 14 years:
On closer view, we see a 15-month up trend recently broken:
Not shown on these charts is that HLF has fallen below its 200-day moving average and is at a nearly 4-month low despite equities overall having enjoyed one of history's greatest 3-month rallies to start this year.
We're already short Herbalife at an average of $57 and are encouraged in our position today that makrets have bounced big, yet as of this writing HLF is down 2% on the day.
It should perform even worse once the next bear market leg in global stocks soon resumes.
It's trading at $53.90 and we suggest covering should it cross above $60.00
posted by C. Guinness @ 3:20 PM
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