Bearish Bets: 3 Tariff-Exposed Stocks to Short This Week
These hard-hit shares are vulnerable to new tariffs, displaying 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.
Five Below Takes a Major Tumble
With the tariffs being announced on Wednesday and immediately implemented there are some businesses in the crosshairs. One of those is Five Below FIVE, which fell sharply following the news. This company buys is products from China and other nations, so there are going to be ramifications for future purposes. This is all very real though and is playing out now in the stock market.
Five Below was already struggling with a downtrend and now a new leg lower puts more pressure on.
The chart is still in a massive downtrend. With lower highs, lower lows that continues to be the trend. Money flow is weak and the MACD (moving average convergence/divergence) is on a fresh new sell signal crossover.
We'll target the $40 level for starters and re-evaluate after. Place a stop at $71 just in case.
The Bears Have Taken a Bite Out of SharkNinja
Another company with heavy exposure to China manufacturing is SharkNinja (SN). The stock was just bludgeoned the other day on news of a tariff policy. The drop Thursday was just part of a massive downtrend that had been in place since mid-February.
We see the downtrend channel in place of lower highs, lower lows. MACD is on a sell signal crossover now and the RSI (realtive strength index) continues to bend lower at a steep angle. Lastly, the cloud is red and expanding, which means more pain to come.
So, even after a big move down we still see a more to go. The stock could drop another 20%, in our view, so we'll target that spot which comes in around $54, which would be an extremely bearish move down. Nothing in the chart here says to buy SharkNinja, but a short play is certainly acceptable.
Put in a stop at $75 just in case.
Wayfair Is Major Casualty of New Tariff Policy
We'll see more damage to companies down the road from traiifs, but an immediate hit to Wayfair W is likely in the interim. This stock had been falling sharply with big ranges for weeks and it just finally broke the triangle pattern to the downside. That was a hit that was done on very high turnover.
As a result, the stock is taking another leg down while the MACD rolls over. RSI is making lower highs, lower lows and the money flow is very poor. There is simply no reason to buy this stock, but a short play can be considered.
Let's target the $18 area as an aggressive move, and put in a stop at $30 just in case.
