Bearish Bets: 3 Stocks You Should Consider Shorting This Week

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.

We've Seen This Movie Before With Cinemark

There is no question this recent move down in Cinemark Holdings CNK is bearish. In fact, the blow on Wednesday opens the door to much lower prices ahead, perhaps to the lows hit last summer. That would be quite a fall indeed, but the selling intensity has been kicked up a notch, and there's a lack of buyers at this time. Hence, we can see the stock continue falling as big institutions distribute (sell) the stock over several days.

Where to start with this chart? The MACD (moving average convergence/divergence) is rolling over, the RSI (relative strength index) is nearly oversold and the 200-day moving average is in clear view, about two points lower. That is a good first target but eventually we see this making its way down to the lower $20's. 

Let's target that area, abd put in a stop at $30 just in case.

Supernus Needs Some Good Medicine Fast

That massive hole in the chart of Supernus Pharmaceuticals SUPN is nothing to get bullish about. In fact, with some downside follow-through and a break of the 200-day moving average this stock is going to fall under its own weight. 

The indicators are very weak, with the MACD rolling over while the money flow is bearish. Further, the RSI has rolled over and is nearly oversold, but not yet, so there is more down to go.  

Check out the high volume bars circled, which tells us when big money was exiting the stock. So, we could eventually see a move to the September lows, about 10% lower than current levels but possibly then even lower beyond that. 

Let's target the $18.50 area ultimately, put in a stop at $39 just in case.  Very bearish candle here this week.

Celanese Is 'Chemically' Imbalanced

One gap lower is bad, but a second one that leaves dip buyers hanging is even worse.  That is what we see from the Celanese CE chart, a terrible situation now for anyone who bought the dip after the first big drop in November. That failure eventually led to a 40% drop in the stock, a spectacular move on very heavy volume. We call that distribution. 

The indicators tell the story too, with bearish money flows, weakness in the RSI, a red cloud (noted) and the MACD about to roll over. There is nothing here in this chart worth taking risk to the upside, but more down is a good bet. 

Let's target $45 for starters, put in a stop at $76 just in case.