Bearish Bets: 3 Nasdaq Stocks You Should Consider 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.
Science Applications Has a Long Drop In Store
There is no doubt when a stock falls and then follows through on that drop that there is more downside to come. Take Science Applications International SAIC, a big defense contractor whose chart was completely blown apart this past week.
There is nothing worse than your stock falling out of favor when the rest of the market is rising.
The indicators here are atrocious, with the Moving Average Convergence Divergence (MACD) now on a sell signal while money flow is bearish. The price action is poor, but that is a new trend. The Relative Strength Index (RSI) really took a dive too, so we see more down to at least the August lows.
Let's target that area, $117 or so, for a nice run down, and put in a stop at $145 just in case.
Just the Start of a Bearish Move for Bilibili
A high volume move to the downside is not bullish, even when there is the prospect of turning it around. We don't see that possibility here with Bilibili BILI. The stock was hammered this past week on pretty strong turnover, which means big institutional selling. Money flow is bearish too, while the MACD just turned lower for a bearish signal.
We also see the cloud has just turned red, more evidence of downside action to come. The first day of breaking that triangle might seem like an opportunity to buy, but frankly it is more an invitation to short sell the name.
There are several targets below current levels, including the 200-day moving average at $15, but the $13 level (August lows) looks to be better. Let's target that spot for a nice gain, and place a stop at $24 just in case.
Tetra Tech Fails to Hold Key Levels
It's been a rough couple of weeks for Tetra Tech TTEK, with the stock having fallen sharply on some pretty strong turnover. That heavy volume indicates that big money is selling, and a sign for the bulls to get out of the way.
The stock fell hard this past week on Thursday and found some support at the 200-day moving average, but that is not likely to hold on the next test.
The indicators here are bearish, money flow is awful while RSI has rolled down hard. Meanwhile, the cloud is red and the MACD is on a double sell signal.
All of that should suffice for a short play, so let's target the mid-$30's and then further if that objective is met (high $20's). Put in a stop at $49 just in case.
