Herbalife (HLF) — up the ladder or down the hatch? (December 30, 2015)
HLF HLF
Lets look at a stock that has been flat. Herbalife ( NYSE:HLF ) has been Bill Ackman’s folly, wanting this company to go out of business. But what I want you to look at is this: the stock’s trading in a range, and today’s price action is not looking particularly bullish. If the stock starts trading below the 200-day moving average, frankly, I think that’s a good short. I think this would be a good short. You look at where this stock has gone this year. It started somewhere down here, even up here, the low 30.00’s. It has essentially doubled at one point, and has been drifting sideways ever since.
You could see some, as opposed to tax loss selling, we’ll say, some delayed tax profit selling. You could see some of that coming this next week, because this has been a top performer in the market; it’s just over 6 months that it’s been horrible, it’s just been drifting sideways. So I want you to be careful here. Certainly be careful about being a true believer on Herbalife ( NYSE:HLF ). Lets just say the 200-day moving average is at 52.38, I want to be giving the “heads up” when the stock hits 53.00. So members, you will be getting a price alert with this snippet of video when Herbalife ( NYSE:HLF ) hits 53.00.
Free Chart