Bearish Bets: 3 Beaten-Down Stocks You Should Short This Week
These names have been hit hard, and their struggles are likely not over.
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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.
MongoDB Follows Through to the Downside
Just an awful day for MongoDB MDB on Thursday with heavy turnover and trading far to the downside. In fact, the stock reached levels not seen in months, and followed through with more bearish action on Friday. That is bad news for the bulls, as the stock is now firmly in bearish territory after breaking the triangle of higher lows and lower highs.
MACD (moving average convergence/divergence) on Mongo is bearish and has been for a few weeks. Money flow just went negative, the RSI (relative strength index) is bending lower at a steep angle, which tells us more downside action is likely. The bottom pane shows the bottom just fell out from on balance volume indicator.
We see more down here even after this heavy move. Let's target the $150 area, and put in a stop at $210 just in case.
Cooper Companies Continues Its Bearish Ways
Cooper Companies COO has been in a downtrend for months, with a series of lower highs, lower lows that has crippled the stock. No question the reason this stock has been bearish is due to the weakness in the indicators. There have been high volume moves to the downside with weakness in the MACD, while money flow is bearish.
The cloud is also red while the RSI just fell like a stone to oversold, which can stay that way for quite some time. We do not see too much risk here, as the trend is down.
Let's target the $70 level first, then probably a move to $55 is next.
Genesco Get Smacked Around and Then the Knockout Punch
It's remarkable how well charts can predict the action in stocks. Take Genesco GCO, which had shown a bearish trend of lower highs, lower lows but had already reached oversold. Understandably, it would be tough to initiate a short, yet if you did last week you hit jackpot this week with the stock getting drilled into the ground.
The recent slide in relative strength tells us how bad this stock is. The stock market has been performing poorly, but this stock even worse!
Volume was big this past week with that heavy selloff on March 7 (earnings), but there is no relief coming, and if the stock does rally some it is time to lay down an even bigger short play. This stock is very bearish.
Let's target the $20 level, and put in a stop at $32 just in case. We should see a move to the teens develop.
