Bearish Bets: 3 Nosediving Stocks You Should Short This Week
These names all experienced big drops on earnings, and the selling is likely not over.
You're reading 0 of 1 free page.
Register to read more or Unlock Pro — 50% Off Ends Soon
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.
Bulls Put the CART Before the Horse
It doesn't take much to tear down a nice uptrend. That's what happened this week to MapleBar CART.
The stock was totally smashed this week on heavy volume. The nice move up from the lows in April is still in tact but the damage has been severe. Heavy volume selling (circled) this week puts the bulls on notice — bears are serious about more downside work.
In fact, there is an area we see targeting and that is those April lows around $36. That would be an ugly move down, but the chart is now threatening to break support. MACD is now bearish, money flow has been negative for a month and the RSI turned down. We see an eventual move to $36, let's put in a stop at $49 just in case.
Cava 'Caved In,' MORE Downside to Go
What a miserable week for restaurant name Cava CAVA, which buckled under the pressure this week of poor earnings and guidance. In a market that is priced for perfection, if you miss on the top/bottom line or guidance you will get punished. That happened to Cava this week and we see more punishment ahead.
The MACD is rolling over here while the RSI is nearly oversold, but that is no reason to let up. On balance, volume has gone straight down and there is no interest in buying this name after the big volume selloff this week. Therefore, let's put a short to work and target the low $60s, which might take a bit of time to get to. Stop out at $79 just in case.
CoreWeave Has Flipped Hard to Bear Territory
There's no question that technology has been leading the way for the stock market, and recent IPO CoreWeave CRWV has been a beneficiary.
At its zenith, the stock reached about $165, or a 7x move from the IPO price. That is stunning, but clearly an exaggerated move up. So, what goes up often goes down and with a big lock up release due out next month the anchor is getting heavy on the bulls.
The recent earnings report emptied out the bulls' wallets in a rough scene. Heavy volume the to downside is bearish, of course. The MACD is rolling over while we have seen money flow bearish for weeks. RSI is rolling over too, and if the support at $105 fails, this stock is history.
Let's target the $85 level first and then perhaps $70 as the next objective. Stop out at $125 just in case.
