Bearish Bets: 3 Struggling 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.

A Breakdown in Impinj Means Lower Prices Ahead

The slide for Chinese name Impinj PI has been spectacular. From peak level near $240 in late 2024 the drop has nearly reached 45%. What a move down after a sharp rise up in just a few months prior. However, we are not judging the move, clearly big money managers were not enthused about owning PI at those peak levels and started shedding the stock just before Halloween.

Notice the strong trend of lower highs, lower lows in the chart. That is a bearish trend, and with indicators like the MACD (moving average convergence/divergence), money flow and relative strength also signaling weakness there is potentially more downside to come. That August low might hold for a short time but any bounce from that level ($131) is a sale (short).

Let's target the $115 area in an aggressive move down, being patient. Let's put in a stop at $154 just in case.

Bruker Has Shown the Bulls Nothing of Late

There is not much good to say about the chart of Bruker BRKR, which just seems to collapse under its own weight every time it seems a rally attempt is made. Take this past week, with a very strong day Wednesday for the entire market, but this stock performed badly. Although the lows in December are in play for a bounce zone (let's call it $65) we don't think that will hold and thus the stock will likely make run to the November lows.

Interestingly enough, markets were very strong in November, but again Bruker badly underperformed. So, with a sell signal confirmed on MACD, poor money flow and a turn down in relative strength let's target those November lows at $48, which would be a nice 16% gain from current levels. Put in a stop at $63 just in case.

Biomarin Has Heavy Downside Activity — And More to Come

This former high-flying biotech is challenging recent lows and if the heavy volume and price action are any indication, it means BioMarin Phamraceutical BMRN has more downside in store.  Notice the weakness in price action lately? Heavy moves down on those last two bars, tells us institutional or professional selling is at hand. In other words, heavy distribution.  

This sequence can last a bit longer, especially if the price falls through those November lows. MACD just crossed for a sell signal, relative strength is clearly very bearish while the money flow just turned down. 

If a stock cannot rise with the market then it is bearish and we look for a short play. BioMarin is a candidate. Let's target the $50 area, put in a stop at $75 just in case.