Bearish Bets: 3 Nasdaq Stocks Investors Should Consider Shorting This Week

Let's check three stocks that appear technically bearish and look ready to short.

While we will not weigh in with fundamental analysis on these issues, we will pop the hood for a look at the charts.

Let's dig in.

The Bears Have Started Feasting on Symbotic

A major slip up post earnings has the bulls very worried in their Symbotic SYM investment. Not only did this stock get drilled last week on heavy volume, it basically took away six weeks of upside movement. As they say on Wall Street, going up is like taking the escalator, going down is like taking the window.  

The indicators have turned sharply south with the MACD (moving average convergence/divergence) on a sell signal, and RSI (top pane) moving lower, too.  Money flow is barely positive but that is of no consequence. The monster volume seen on Wednesday is enough for us to take a short play, even though a rally might ensue (which would be a spot to add more short).

Let's target the $16 area for a potentially nice gain to the downside, and set a stop at $30 just in case.

Nutanix Chart Was Telling Us Something Ominous Was Going to Happen

Take a look at the box we drew here on Nutanix NTNX. This shows the heavy volume day earlier last week and a major price reversal as well. That was telling us the buyers were rejecting higher levels, and warning that anything less than stellar with their earnings report was going to be a disaster. 

Well, that happened on Wednesday and while the volume was not huge like Monday, we did see a massive reversal occur on good turnover. Money flow has weakened as well, while RSI has shifted downward and the MACD is now on a sell signal. The first big one-day move down is telling but it is the follow-through that is more meaningful, and we should see more downside to come.

Let's target the 200-day moving average of $50 for a nice move lower, and set a stop at $72 just in case.

Autodesk Gets Hammered to a Key Support Line

There is nothing worse than failing a trend line, which is what happened to Autodesk ADSK this past week on very heavy volume. The stock had been moving up nicely and following that solid trendline from July but failed miserably. For the bulls, the best news would be a bounce off the 50-day moving average where it may have found support.

However, the indicators we follow are telling us that may not hold, and in fact could lead to a drop towards the 200-day moving average rather quickly. The MACD has rolled over here as has the money flow, while volume trends have turned bearish. If there is a lower high, lower low then the trend in price will be bearish.

Hence, we'll set a short trade target at $250, and put in a safety stop at $315.