Bearish Bets: 3 Nasdaq Stocks You Should Consider Shorting This Week
These names are displaying bearish tendencies based on their technical patterns.
You've reached your free article limit
You've read 0 of 1 free Pro articles.
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.
Logitech Is Tripping Over Itself
Logitech LOGI has been drifting lower for a month and last week really got smacked hard. The stock tested the 100-day moving average but fell hard on heavy turnover. That is a sign of big institutional selling, and there could be more downside ahead.
Money flow has now turned negative after it was flying high a month ago so this uptrend has been dismantled quickly. Moving Average Convergence Divergence (MACD) is on a sell signal, but the 200-day moving average looms large (lower).
There is a downside trade here, with a target down to $86 and then $82 to fill a gap. Put in a stop at $94 just in case.
Confluent Pushes Lower and Threatens a Much Larger Breakdown
A couple of nasty down moves for Confluent CFLT and all the sudden the budding uptrend flips to a downtrend. Though there could be some support a bit lower in the mid-20's there is simply too much downward pressure on this name to ignore the downside action.
Look at the high volume bars on the down sessions last week — the turnover is accelerating. More sellers are coming out of the woodwork, and thus a short opportunity is upon us.
Entering a short here still looks like a low-risk entry point. Target the $20 area, a nice 20% gain from current prices, and put in a stop at $30 just in case.
Helen of Troy Is in Need of a Total Makeover
What a mess last week from Helen of Troy HELE, the maker of consumer housewares and beauty products. The stock was bludgeoned on very heavy turnover, which again is institutional selling. When the big money is leaving a stock there is no reason for you to be buying it, in fact there could be a short opportunity we see developing with this name.
The MACD rolled over weeks ago and money flow remains bearish. The stock was in a downtrend even before the recent drop. Relative Strength (RSI) is oversold but that does not mean buy, in fact any rally would be another great short chance.
We see more downside here, so target the $50 area, then lower if it reaches that objective (down to $44). Put in a stop at $72 just in case.
