Bearish Bets: 3 Stocks Primed to Be Shorted This Week
These shares are 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.
Robert Half's Downtrend Looks to Continue
Staffing firm Robert Half RHI is in a tailspin. The stock has been in a deep downtrend since a breakdown late in 2024. With a series of lower highs and lower lows in place there is no question the direction is down.
But how much more?
That is not a question we are here to answer. Rather, just play the trend and ride it out as long as possible, and for RHI that means perhaps a move into the $30s is imminent.
MACD (moving average convergence divergence) is bearish and has been for a month now. RSI (relative strength index) is weak as the stock remains under the relevant moving averages.
It is not positive when a stock is acting poorly while the market is higher, so let's target the low 30s first, snf put in a stop at $49 just in case.
IBM Misses the Mark and Becomes a Target for Bears
What appeared to be pretty decent earnings for IBM IBM was dismissed this week by the bulls as a terrible miss. The stock was punished severely and is now set up for more downside.
Unfortunately for IBM, the indicators have turned down in sweeping fashion as there are clues to more downside. The RSI is a good example of this, with this indicator being rejected and turning back down but not quite at an oversold level yet. MACD is turning down and will be on a sell signal within days, while money flow is now bearish.
The channel, though, may be offering support, the lower end of it at the lows from April 24. Regardless, the selling pressure and volume is intense enough to call for continued downside.
We see this stock making a run towards $215 and then down to $200 if things get really bad. Put a stop in at $240 just in case.
The Bulls Are Not Running at Churchill Downs
The Kentucky Derby is coming up in about a week and Churchill Downs CHDN is going to be in focus. Yet the sellers have been busy distributing the stock over the past several months, a clear downtrend in place (lower highs, lower lows).
The big move down this week was on very heavy turnover. The MACD has now turned lower for a bearish signal while the RSI is oversold, but that is never a reason to be a buyer. Price action is simply horrible, so that sets up a short selling position.
That reversal this week (circled) is just nasty. Let's target the low $80s to start, there is some good support down there from several months ago, and put in a stop at $105 just in case, but that doesn't appear to be relevant.
