Bearish Bets: 3 Weakened Stocks You Should Short This Week
Here's why we believe these names could fall even 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.
Boston Omaha Is a New Name With the Same Old Chart Problems
The chart of Boston Omaha BOC is one similar to what we have profiled here recently. With lower highs, lower lows in the top price chart, there is a defined downtrend in place. Not to mention weakness in money flow and the MACD is on a sell signal, there is more than just the price action that is leading the stock downward.
Breaking the recent support at $14 was not good and with followthrough to the downside. Though the stock has recently fallen about 20% there is potentially another 10% down here before the stock may have found support. Let's target the $12 area, put in a stop at $15.20 just in case.
Perma-Fix Is in Need of Some Serious Fixing
That downtrend channel for Perma-Fix PESI is narrow and steep. There is very little in this chart that is bullish, in fact nothing in the indicators point to any reason to buy this stock. Money flow is bearish, the RSI is bending lower at a steep angle. Take a look at the MACD down, bearish since crossing over in early November and it just remained bearish through that very strong market month.
Plenty of downside left to go here on this name to the July lows. The downtrend channel drawn has maybe two to four up sessions with all the rest down, that is some serious selling and it doesn't appear to be over. Let's target the $8 level, a good 20% down from current levels, put in a stop at $12 just in case. Very bearish here.
Celanese Is Bottoming, but May Have More Downside Left
It is hard to get uber bearish on Celanese CE, but the stock continues to perform badly when the markets are rallying. No wonder the relative strength is in the red and has been for weeks. Money flow as been atrocious, with high volume on the down sessions. This tells us that big institutions have been pulling out of Celanese in a big way and leaving the shares for others to buy. That is enough reason for us not to want to buy it, but certainly a downside move could continue.
When stocks are distributed like this name there is usually another "bomb" that goes off to blow up the stock. We don't know if that is true in this case, but certainly the big money is getting out or has already exited. Therefore, let's target some downside and be patient. A goal of $50 is a good target, let's put in a stop at $84 just in case.
