Bearish Bets: 3 Nasdaq Stocks You Should Consider Shorting This Week
These stocks are displaying bearish tendencies based on their technical patterns.
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Welcome to another edition of Bearish Bets, our weekly feature where we identify three stocks that look bearish from a technical perspective and may present interesting investing opportunities on the short side.
While we will not be weighing in with fundamental analysis on these issues, we hope this piece will give investors interested in stocks on the way down a good starting point to do further homework on the names contained herein.
Adobe Is in a Good Spot to Catch a Short Play
The big enterprise/software company Adobe ADBE has been a recluse from the recent tech stock surge. After failing to inspire investors the last two earnings quarters the money flow shows they are simply giving up the ship on owning Adobe.
It makes sense really, with the stock's pattern of lower highs, lower lows in place — a textbook downtrend. In a bull market if you find stocks not participating then they are likely a ripe candidate to short. Money flow is poor as shown, Moving Average Convergence Divergence (MACD) is on a sell signal and the cloud is red.
Recent action to the upside sets up a great short opportunity. Let's target the $400 level, put in a stop at $480 just in case.
Akamai Just Can't Catch a Break
It's tough when a stock simply fails to participate with the rest of the market. Akamai Technologies AKAM is certainly one of those, and with a series of lower highs, lower lows there is a confirmed downtrend in place.
This being a tech name (but apparently little to do with AI at the moment) Akamai's chart is horrendous. Money flow is poor while the Relative Strength Index (RSI) cannot even get above the 50 level, hence no bullish momentum. Therefore, the trend is still down and even though the stock has fallen 35% from the February highs, there is more downside to go unless the stock turns upward.
MACD is on a sell signal and is just going flat. So, we could see at 10% move down at least from current levels. Target the $80 level and then $74 beyond that, but put in a stop at $96 just in case.
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Schrodinger Tries to Break Upward But Is Once Again Denied
It's been a long, hard road for Schrodinger SDGR since the end of February when this stock broke down hard. A series of lower highs and lower lows has this stock trapped in a downtrend.
SDGR stock has lost a slew of value over the past few months; it tried to rally this week but has been rejected soundly.
Money flows are very bearish here. We see a continued opportunity to make money on the short side.
Target the $14 area for an aggressive move that might take some time to reach the objective. Put a stop in at $25 just in case. This chart is extremely bearish and will continue to move down if the market corrects.
