3 Stocks Bears May Want to Target Now
The charts of these names suggest more pain ahead. Here’s a trading strategy for each.
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Welcome to another edition of TheStreet Pro’s Bearish Bets, our weekly feature where we identify three stocks that look bearish from a technical perspective and may present interesting investing opportunities on the short side.
While we will not be weighing in with fundamental analysis on these issues, we hope this piece will give investors interested in stocks on the way down a good starting point to do further homework on the names contained herein.
Kaiser Aluminum Breaks Below a Downtrend Channel
In what is possibly the worst situation, the chart of Kaiser Aluminum (KALU) just broke some good support and now looks headed much lower. A channel of lower highs and lower lows is our textbook definition of a downtrend.
Relative strength is now oversold but that is no reason to buy. MACD is crossing over for a sell signal while money flow remains weak. There is some support at the March lows, which now come into view at the $104-106 area.
Let’s target that spot, and then even lower if that objective is met. The $95 area looks pretty strong, but after this deep drop let’s set a stop at $132 just in case.
Awful Action for Carpenter Has Bulls Very Concerned
After making a solid run higher during the first half of 2026 we now have Carpenter Technology (CRS) making a full round trip. That is bad news for bulls, now that there are few investors left sporting a gain on the year. It is actually even worse, as the stock has made a new low for 2026 and appears headed even lower.
This company is commodity-driven (alloys), and has had a terrible time since peaking in summer. You can see the double top formed in the chart, and the dramatic slide that followed. This past week saw a massive drop on volume following mediocre earnings.
Notice also the relative strength, which has been oversold for weeks. We have talked about this not being a place to buy, and if you did with Carpenter you would have been burned badly.
Let’s target the $250 area, which may seem quite low, but considering all the volume and poor price action this might be a good target. Put in a stop at $320 just in case.
FirstCash Gets Blasted After Earnings
The stock of pawn shop holding FirstCash Holdings (FCFS) was hit hard this past week following some decent earnings, but guidance lacked punch. This was the case of a stock that rose sharply but failed to live up to expectations. The channel was broken to the downside and now with a bunch of sellers waiting in the wings there are lower prices ahead.
Notice the weakness in MACD, which just rolled over again and the money flow, which continues to be bearish. Relative strength is oversold but that is no reason to be a buyer.
Failing to hold the 200-day moving average was a game changer for FirstCash, and now the lows of the year are in view. Let’s target the $155-160 area, and put in a stop at $205 just in case.
