Bearish Bets: 3 Well-Known Stocks You Think About 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.
Uber Is Running in Reverse
Uber's UBER chart is showing some weakness. The stock pulled back sharply to the August lows last week on some pretty heavy turnover. That means big institutions are selling hand over fist, which also tells us more downside is likely.
The indicators are weak, with money flow firmly in bearish territory. RSI is oversold and the MACD is on a sell signal. The recent drop below support is concerning for the bull case, but a bearish trade can be initiated.
Let's target high $40's in an aggressive move that might take some time, and put in a stop at $67 just in case.
No PLAYing Bullish With Dave & Buster's
A miserable earnings report last week from Dave & Buster's PLAY has also followed through to the downside. The stock was hit hard Wednesday on higher volume and continues lower, which means we could see an oversold bounce very soon. But that bounce is likely to be a short trade opportunity, as we are seeing more downside below the September lows.
Indicators are atrocious, and the money flow extremely bearish, while MACD renewed another sell signal this week. Volume trends are bearish and the cloud is red and widening out. There's just no reason to be long this name, but certainly some downside targets are possible.
Let's set a goal price of $22, and put in a stop at $35 just in case. This stock is very bearish.
UnitedHealth Is Dealing With Some Issues
The tragedy of the shooting death of a UnitedHealth UNH executive weighs on the minds of the general public, but also shareholders. The stock has been plummeting ever since that shocking event, but even leading up to it the stock was extremely challenged.
No question UnitedHealth has shown weakness after peaking in early November. A series of lower highs, lower lows is a textbook definition of a downtrend. Money flow has been weak in this Dow Industrial name, the RSI (relative strength index) bending lower at a steep angle as well, means more downside is likely even though the chart shows an oversold reading. MACD (moving average convergence/divergence) has rolled over and the stock is fighting the 200-day moving average.
All told, it looks like more downside to go for UNH, perhaps to the June lows seen on the bottom left. Target $460 for an aggressive down, and put a stop in at $590 just in case.
