Bearish Bets: 3 Stocks to Short This Week
These shares are showing bearish tendencies and charting a path downward.
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.
1. It's a Fire Alarm for Fiserv
Fiserv FISV has been having a rotten year so far. Since January, the stock has been making lower highs and lower lows, it's that textbook definition of a downtrend. Along with it has been poor volume trends, all bearish all the time. Money flow is deeply in the red right now, and this big bar down on May 15 does not seem to be the end of the slide. We see more coming.
Let's target the $120s here on an aggressive move lower. It may take some time but this target has long term implications, some good support down there. We'll put in a stop at $180 just in case.
2. Akamai Cannot Overcome the Intense Selling
If there is one thing we know about stocks, it is that "if they are not going up then they are probably going down." The bullish case for Akamai AKAM was recently shot down after a run to resistance was soundly rejected. The MACD is turning down again, no surprise here, this indicator has been weak for months. It all boils down to how much more downside for this old-line internet tech firm.
There is potentially some support at the April lows, call it $65 and change. But we don't think that holds here and could see a run into the low 50s before any bulls start to get back on board. Let's target $65 first and then down to those low 50s. It's been a slippery slope for Akamai and that is likely to continue.
3. CVS Just Can't Catch a Break
With all the worries over fraud UNH and cutting of medicare/medicaid spending, stocks like CVS CVS are clearly in the crosshair. This company is no longer just a drug store. Several years back they bought HMO provider HealthNet, a competitor to UNH and others in the group. So, anything bad related to this sector will hit all players including CVS, which is pretty well diversified on its own. The stock is not in terrible shape but the recent trends are down and that looks destined to continue.
The downtrend channel drawn is steep with a heavy sloped and is quite narrow. That means sharp moves can happen without much of a bounce. We see lots of support at the gap in the chart but that is far down the line in the high 40s.
Money flow is poor, relative strength has rolled over and moving average support is being challenged. It means more down for CVS I'm afraid, so let's target those low 40s, put in a stop at $66 just in case.
