Bearish Bets: 3 Stocks You Should Consider Shorting 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.
MarketAxess Shows Weakness As Markets Rally
It is tough to be that ONE stock that does nothing or goes down when the rest of the market is rallying to a record day. That is what happened on April 9 to MarketAxess MKTX.
The stock fell sharply at the open and just simply rallied back to its opening level. That is not bullish action and in fact that rally means there is probably some more downside to come for MKTX. Note the weakness in money flow at the bottom, and MACD (moving average convergence/divergence) is confirmed on a sell signal, too.
We should also note the weakness in the RSI (relative strength index), which is not yet oversold but will be soon. This also leads us to believe more downside action is in store. This chart certainly is not bullish.
So, let's target the $175 level.
Dollar General Struggles at Resistance
Some better-than-feared earnings recently from Dollar General DG brought a nice relief rally for this stock but right up to the 200-day moving average. That resistance point stopped the stock dead in its tracks, and while it did exceed that level for a few days the longer-term trend remains down.
MACD is looking lower here and is about to confirm a bearish crossover. Relative strength recently peaked and now is heading downward, so plenty of room to move down until reaching an oversold condition.
While there appears to be a nice uptrend in place we have to consider the bigger picture here, which is down. Hence, we would target the $75 level again and probably a bit lower, but let's put in a stop at $100 just in case.
Mr Cooper Shows a Nasty Reversal Pattern
A recent move higher by Mr. Cooper Group COOP looked encouraging as the stock followed through earlier this month with some good strong volume and price action. But that move faltered this past week as some heavy selling and volume kicked in as the markets swooned. Even more, with the big rally on April 9 this stock still remained down on the day, not what you like to see if the S&P 500 rallies 9.5%.
The indicators are just neutral here but are tipping the scales to bearish. Money flow is weak while the MACD is sharply turning down and will cross over bearish in a couple of days. We see a move happening soon to the 200-day moving average, call it $96. which would be a nice move down from current levels. Put in a stop at $128 just in case.
