Bearish Bets: 3 Weakened Stocks You Should Consider Shorting This Week

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.

YY Does Not Stand For YES YES

JOYY Inc. YY, formerly know as YY Inc., is a repeat offender in our bearish chart series.  The stock has been punished severely this past week amid very strong turnover (arrow). The RSI (relative strength index) peaked recently and is heading lower towards an oversold reading. 

Money flow is just turning negative, too while the MACD (moving average convergence/divergence) is rolling over. All signs point towards a move to the 200-day moving average, but that might not hold.  

Let's consider an aggressive short play here, targeting the $31 level for a potentially nice 20%+ gain if the objective is met. Put in a stop in at $40 just in case.

Mondays (and Other Days) Are Tough for This Stock

Monday.com MNDY was just drilled mercilessly this past week and followed through to the downside. This puts MNDY at an oversold condition, but as we know, that's not a reason to be a buyer. 

Money flow is horrendous; from a nice steady bullish flow the tide shifted markedly this past week. Notice the heavy volume bar during the week, a clue that big money is exiting the stock.

MACD is also on a sell signal while the cloud is red and expanding lower. There's nothing positive here, especially as MNDY has fallen below the 200-day moving average for the first time since August.

Let's target the $200 level, an aggressive move down but very achievable, in our view. Put a stop in at $285 just in case.

If Heico Fails to Hold the 200 DMA, Then....

Heico HEI stock got hammered this past week on some serious volume. Notice the arrow in the top chart, that is the biggest volume bar seen in years, and no doubt big money was exiting there position in a big way. Without much of a rally this stock looks headed lower. Support may be found at the 200-day moving average, but if not there is likely a significant drop ahead.

We may have some support all the way down to the $185 level, but let's target the $210 price first. MACD has been on a sell signal for weeks and the RSI is oversold.  Hence, there might be a chance to sell more (short more) on a pull-up.  

For starters, let's set a target of $210, and put in a stop at $255 just in case.