Bearish Bets: 3 Popular Stocks Break Down on Big Volume

Bearish Bets: 3 Stocks You Really Should Consider Shorting This Week

Let's check out three stocks that appear technically bearish and 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:

Weak Guidance Plagues Ulta Beauty

There is nothing like a poor earnings report to ruin a perfectly nice bullish chart. Ulta Beauty (ULTA) just posted some nice earnings but was cautious about consumer spending, a hint that their future earnings were going to be off the mark. The stock reflected this sentiment, falling sharply on Friday with very heavy volume (blue arrow). This is quite different than the other days of higher volume when the stock ripped higher.

This latest episode is bearish for Ulta, as the indicators are also into the bearish camp. Relative strength has nose-dived, MACD (moving average convergence divergence) is firmly on its second straight sell signal and the Chaikin money flow just turned bearish.

Lastly, the 200-day moving average just fell hard for the first time since April 2025.

Let's focus on the June gap for the first target at $420, but it'll take some time to get there. Put in a stop at $600 just in case.

Adobe Is Just the Latest Problem for Software Names

If anyone objectively looked at the Adobe (ADBE) chart before earnings hit last week you found the stock to still be in a downtrend. Oh sure, with elevated volatility and perhaps an earnings surprise to the upside it may have been worth a shot, but the stock has not given you a buy entry point for months.

Why take risks on a stock that is not showing positive momentum, flows and trend?

The bearish signals have been there for months, as a backlash against these sort of software stocks (vs. AI) continues to punish these names. Adobe is just the latest example.

The stock has made lower highs and lower lows for months, and that is a textbook definition of a downtrend. RSI just rolled over with a lower high on the chart, as Adobe just broke its lows from 2022, the bear market lows!

Let's target the $225 area then perhaps $210 below that. Put in a stop at $260. This is an extremely bearish chart but you'll need patience.

Meta Breaks an Important Zone

While you may like the company Meta Platforms (META) , the chart is telling you to stay away for a bit. The recent break of the triangle was on some higher volume, which is called institutional selling (distribution). You want to get out of the way when the big money is flowing OUT of a stock like this one.

MACD is on a double sell signal now, and the RSI (Relative Strength Index) is bending lower at a steep angle (which usually means more downside to come).

Let's target that gap in May at $550 as that seems begging to be filled. Put in a stop at $660 just in case, but a confirmation to the downside move last week will cement the trend as bearish.