Chart Analysis for SOLR, ORN, and MDR

The market has found its way back into the red today, and we've found three stocks that are not only leading the charge, but could continue to blaze bearish trails in the foreseeable future.

At first glance, McDermott International (NYSE:MDR) doesn't look like it's in that much trouble. Keep looking though.... it gets worse the more you study the chart.

The red flag being waved by McDermott International is today's high-volume selloff and accompanying outside reversal bar. That just means today's open was above yesterday's high, and today's close (so far) is under yesterday's low. It's a signal of a sudden change in sentiment regarding MDR.

There's a bastion of hope for McDermott International shares at the rising support line (blue), but weighing in just as heavily on MDR is the falling resistance line. After seeing today's action, I believe the wedge shape has more bearish implications than bullish.


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Slowly but surely, Orion Marine Group, Inc. (NYSE:ORN) has been falling out of its consolidation zone and starting to point lower. The worse it gets, the worse its apt to get in the future,

The first clue of the demise of Orion Marine Group shares came two weeks ago when a minor support level (barley rising) was breached with the move to $18.65. ORN tried to recover over the better part of last week, but today's low of $18.59 pretty much declares that line is broken.

Orion Marine Group has a chance at finding support at $16.85, where lows were made between May and July. Given the way the selling volume is slowly building though, I suspect ORN will be under that level too within several days.

If you want some additional perspective on the bearish call, pull up a weekly chart.


I'm still not entirely sure that I'm bearish on GT Solar International, Inc. (NASDAQ:SOLR). Let me walk you through what I'm seeing though... maybe you'll see it in a more bearish light.

All the tell-tale signs are in place. GT Solar International shares have formed a triangle over the last few months, and the bottom side of that wedge snapped today when SOLR broke well under it on high volume. It is what it is.

My hesitation is rooted in the fact that SOLR gapped lower today after hitting the upper edge of the wedge yesterday. I'm not one of those die-hards that assumes every singly gap has to be closed, but I understand the idea.... particularly when the event in question comes from a stock that's been as volatile as GT Solar International has.

I am bearish on the chart, but I've got a sneaking suspicion this stock's going to move higher again to retest some key lines before making any downside follow-through.


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