Bearish Bets: 3 Highly Vulnerable Stocks You Should Short This Week
These shares, which have have been hit hard recently, are showing bearish tendencies and charting a path downward.
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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.
This Software Company Is Not Making Any 'Progress'
After suffering a sharp move lower on Tuesday we saw follow-through to the downside for Progress Software PRGS. That is bad news for the bulls in this stock as it sets up for much lower stock trading in the interim. Big volume to the downside characterizes the exaggerated move, but that simply means big money is heading out the door.
Indicators are very weak as well, with MACD (moving average convergence/divergence) on a sell signal and weakness in money flow and on balance volume. This is just a horrible chart and sinking lower, which is not good when the rest of the market is making new highs.
Therefore, let's target the downside with a move just beyond the April lows, about $45, and then re-assess for another short play on a rally up. Stop out and cover your short at $58 just in case.
Devastating News for Centene Blows This Stock Up
Word Wednesday from Centene CNC that it will miss its earnings and revenue targets served as the match to light the selling fuse. Once lit, shareholders rushed for the exits, not waiting around to see if there would be a recovery.
The technical condition is atrocious, and again how can you get excited about a stock making new lows when the rest of the market is making new highs? Answer, you can't.
So, even as the stock had a precipitous drop there is likely more downside to go. We'll set a target of $25 and then $20 on this wounded name, and put in a stop at $39 just in case.
Waste Connections Has a Dirty-Looking Chart
Even before the big drop this week from Waste Connections WCN the trend down was firmly in place. A series of lower highs, lower lows is our textbook definition of a downtrend, and it has certainly been ugly. The indicators are bearish in kind, the money flow just went bearish, while on-balance volume dipped lower, telling us big money is fleeing.
The drop below the 200-day moving average is not promising, to say the least, and we do not see any upside happening anytime soon, so a short play is in order. Let's target the $170 area for starters and then down to $150. A very bearish chart.
