Whiledata indicate that lower looks much more likely. The stock's fast moving average fell through its MACD indicator line on Friday, but the stock price has failed to go much lower since -- yet. Meanwhile, Convergys's MFI has remained conspicuously high, last closing below 60 on August 20, and having nine out of twelve trading days above 65 since. This indicates the stock is overbought and due for a correction to the downside. Its short ratio of 1.1 backs this up, as anything under 3.0 is typically considered "under-shorted" and thus "overbought."

From a fundamentals standpoint, Convergys's industry has a high average P/E of 29.0, but Convergys is even pricier at -6.5. And although Convergys's dividend yield of 3.9% might at first look like it offers some cushion, consider that the industry's average dividend yield rate is 14.8%, meaning Convergys could be cut in half twice (and then some again!) and still be paying a substandard dividend compared to its competitors.

But perhaps the most damning statistic for Convergys is its horrible insider buy-to-sell ratio. Since May 4, Convergys officers and directors have purchased or otherwise acquired 7,305 shares of their company's stock, while they've sold or otherwise disposed of a staggering 8,920,094. This yields a buy-to-sell ratio of 0.000819-to-1, or expressed the other way, 1221 shares sold for every share purchased. This type of heavy insider selling typically reveals that the stock is in for an imminent decline, which is why I like it as a short-term short