Bearish Bets: 3 Large-Cap Nasdaq 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.

Amgen's Chart Remains Unhealthy

There is nothing worse than an established downtrend to frustrate the bulls. Such is the case with Amgen AMGN, which has been showing weakness for months but only really cracked below key support in November. That is telling, because the stock market was uber-strong during that month, yet Amgen was left behind.  

This is no small company, it is a Dow Industrials component and one of the biggest and best pharma/biotechs in the world.

But if the sellers have control then all the glitter about the company is for naught. The chart tells the story, with bearish money flow, sell signals on the MACD (moving average convergence/divergence) and RSI (relative strength index) simply on its back.  The stock has come down hard in two months and perhaps it is going to finally stop, but the indicators are not saying.

Hence, we'll target more downside here, to the $230 level, and we'll put in a stop at $280 just in case.

Is This Pullback in Microsoft an Opportunity or Not?

When one of the Magnificent 7 stocks gets hit then everyone turns their attention towards it. Recent failings in Microsoft MSFT show the stock testing the lower boundary of a wide uptrend channel. This extended range is about five months long, which the theory tells us the long-term uptrend remains intact.  

But the indicators may put that theory in question. Money flow is weakening each day, and buyers simply are not present on the dip, a disinterested group that seemed rather active in buying the stock on dips early in the year. Will the low end of the range hold or break? It is hard to tell but the momentum downward is quite strong and volume is heavy to the downside.

We don't see too much more downside here but nonetheless and opportunity for a bearish play. Let's target the $400 level for maybe a 5% gain; that is a good support zone. Place a stop at $435 just in case.

DocuSign Is Bullish but for How Much Longer?

We may be a bit early here in this short opportunity with DocuSign DOCU but we'll try it with a tight stop. The chart shows a nice rising uptrend, higher highs and higher lows but the recent breakdown should concern the bulls. MACD is now on a sell signal, too. Price action has been bearish and now DOCU is trading in the gap left from prior earnings.  

Recent volume trends have turned bearish as well. This stock could make its way back to the breakout level around $80. Money flow is positive but much weaker than it was in October/November. If the channel drawn is broken in either direction then we may see a large price move. Our bet is it will be lower.

So, for starters let's target the $80 level, a good 10% lower from current prices, and put in a stop at $97 just in case.