Bearish Bets: 3 Stocks That You Should Think About Shorting This Week
Here's why these names could fall further.
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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.
Match Group Is Looking for a Dance Partner
The Match Group MTCH chart has seen better days. In fact, most recently it was making a comeback with a series of higher lows on the chart.
That is somewhat bullish, but the recent highs at $38 could not be overcome and the stock was vulnerable to the sellers. That happened this week in a big way. Heavy volume (arrow) that exceeded that last big selling bar tells us this stock is in trouble.
Money flow is poor, relative strength is weak and the cloud just turned red. The Moving Average Convergence Divergence (MACD) is also on a sell signal.
It all adds up to lower prices, even after the big gap down Thursday. Let's target the $27 area and then re-evaluate. Put in a stop at $34 just in case.
A Steep Downtrend May Just Be Starting for Vital Farms
A series of lower highs can be a pre-cursor to a more ominous downtrend, leaving the bulls wondering what to do next. If support does not hold then often a huge hole is blown through the chart.
Such is the situation for Vital Farms VITL, which has not broken good support yet but the mountain of evidence says it will probably happen.
Notice the collection of bearish indicators, the MACD on a sell signal, poor money flow (bottom) and high volume this past week, the biggest we have seen in months. That tells us the institutional money is flowing out of the stock, and if the dam breaks at $29 there is a long way down.
We'll target the $23 area, where the stock started rising in April, putting in a stop at $36. Make no mistake, this stock is bearish, being down on a day when the rest of the market is much higher.
Clear Secure Is Headed for a Major Fall
What a lovely uptrend Clar Secure YOU had the last few months. However, it has been ruined by some nasty selling on heavy volume. It doesn't take much to turn the trend, that much we all know.
Clear was moving up and rising on good volume but it was this latest move down on strong turnover that makes this chart bearish.
MACD is pretty poor, and there are multiple sell signals while the Relative Strength Index (RSI) is turning lower. Price action is quite negative and was building up before that huge gap lower this week. This is not easily reversed, in fact a continuation day means more downside, probably to the 200-day moving average.
We'll target that for now, which comes in at $23, a nice 20%+ gain. We'll put in a stop at $34 just in case.
