Bearish Bets: 3 Stocks Getting Hammered With Little Chance to Recover
How to short three stocks that cannot keep up with a bullish market.
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1. CoreWeave Remains in a Bearish Channel
A series of lower highs, lower lows plagues CoreWeave (CRWV), which is somewhat surprising as this company is at the heart of growth in this new and exciting AI segment. But what often gets overvalued like CoreWeave eventually comes in, as long holders have little patience to wait during a downtrend.
The indicators are bearish, money flow is super negative while the RSI is moving lower, but not quite oversold yet. MACD is on a double sell signal, and the stock is below relevant moving averages. Let’s target the $72 area first, eventually coming down the August lows at $60. Put in a stop at $92 just in case.
2. Alibaba Is Rejected at Logical Spot
Alibaba (BABA) returned to the scene of the last crime, the $130 area and was soundly rejected. During that move up in July you could just feel the energy, seeing it on the chart. Push, push, push through resistance but unfortunately the volume trends never turned bullish.
Hitting the $130 area in August and falling is symbolic of the chart, and quite painful for the bulls. We see this down move continuing towards the July lows, as far as that may be.
Money flow just went bearish, RSI is not quite yet oversold and MACD is on a sell signal. This could slowly drift down to the $95 area, a nice profit move of 13% from current levels. Put in a stop at $117 just in case.
3. JB Hunt Drives into a Bearish Wall
Talk about driving off a cliff! This week, JB Hunt (JBHT) was sent to the cleaners this week, but we knew something ominous could be happening with the downtrend channel in place. There has been a series of lower highs, lower lows as the stock melted down to the 200-day moving average this week, and continues to move lower. That is very bearish and signal a new down leg has begun.
Money flow just turned bearish, check out the big volume bar this week as the stock just got punished. MACD has rolled over to a sell signal, RSI is nearly oversold but, remember, that is not a buy signal. There are targets much lower and with the extension of this downtrend that could be profitable. Let’s target the March low of $195, a huge move down from current levels. Put in a stop at $264 just in case.
