Bearish Bets: 3 Names That Are Not Keeping Up With the Bull Run

It is typically a bad sign when the markets are making highs but a stock gets slammed to the downside. These three stocks are having trouble moving up, and now some downside targets are in sight.

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:

1. AST SpaceMobile Is Lost in the Universe

if you’re willing to take some risk on high stakes names, then you’re going to have to understand these stocks will be volatile. That’s the case here with AST Space (ASTS), recently a darling stock that really moved up in a big way but also broke some good support. That $65 level seemed firm, was a few times tested successfully but now a move below there might bring this stock down to the next support level: September lows. That is a ways down and firms up the bearish case.

There is really no bullish argument here for a purchase but plenty of downside objectives to achieve. Money flow is weak, MACD on a sell signal and the RSI is bending lower at a steep angle, there is more down to go. Let’s target the $36 level, put in a stop at $66 just in case.

2. Intel Falls Victim to Sector Weakness

You would have to have been living under a rock not to know the trouble in semiconductor land. It starts with the memory names and spills over to the chips, which have been crushed mercilessly over the past couple of weeks. Count Intel (INTC) as one of the casualties, with a steep new downtrend that continues to attract many sellers of the stock.

There are some downside targets here, namely the gaps left open as the stock started to rise up in April and May. The 200-day moving average coincides with the gap from earnings, that comes in much lower at $63 or so. Let’s target that spot while money flow is weak, MACD on a double sell signal and price action very bearish. Put in a stop at $104 just in case.

3. Nowhere to go but Down for Elevance

Elevance (ELV) has simply been hit hard, but it is early and plenty of downside targets are out there. This company warned after earnings this week and got smashed on heavy volume days. But looking back on the chart you can see the pressure building — several down days were on heavy turnover, that’s a bearish sign. Money flow just went negative and the MACD is rolling over.

We see a good target at the interim February highs, call it $340 or so. This might dance around a bit until then but stay with the new downtrend here. We’ll target $340, put in a stop at $405 just in case.