Technical analysis has numerous applications and uses, but here’s the most important one. Assessing where a stock trades in relation to its 52-week high can serve as a key indicator of the market’s outlook for that company or industry group, and the 20% discount level is one of the most important benchmarks in this analysis. Wall Street refers to this as the difference between a bull and a bear market, and here are three stocks trading well into bear market territory.
MercadoLibre Inc. (NASDAQ: MELI), Rocket Companies Inc. (NYSE: RKT), and On Holding (NYSE: ONON) are now trading under this bear market designation. As these stocks are exposed to the consumer discretionary sector, they may have fallen due to association rather than any company-specific issue. However, in either case, investors need to focus on two main factors moving forward.
