Bearish Bets: 3 Under-the-Radar Stocks You Should Consider Shorting This Week
Here's why we believe these non-household names could fall even further.
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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.
Poor Price Action Spells Trouble for Parsons
Not just one but two major selling bars on Parsons Corp. PSN tells us the big money is heading out of the stock. Further, there is an easy target lower at the gap in early August, which is likely to be filled sooner rather than later.
The technicals are very bad on Parsons, but it is those big bars on Thursday and back in November that stick out like a sore thumb. Those selling days were on heavy volume, big institutional distribution.
We could see more downside here towards the mid-$70's level or even lower, but that targets that gap for an obvious move. Put in a stop at $90 just in case, but this chart is pretty bearish and relative strength (poor) shows it.
AST SpaceMobile Breaks the Triangle Lower
We see more downside ahead for AST SpaceMobile ASTS as a recent break of support on higher volume indicates big money is hitting the exit button. Notice the money flow in the bottom pane, which has been negative for months.
The move down to the 200-day moving average is a decision point, but with very little bullish action in the chart (lower highs, but not higher lows) the path of least resistance is down.
There is some support in the high single digits, perhaps around the $9 area so from current levels a pretty nice profit if the stock gets there. Put in a stop at $25 just in case, but this recent drop could be the start of a significant slide.
The ROAD Less Traveled Is Construction Partners
A big reversal of fortune happened this past week as it appeared Construction Partners ROAD was going to break the downtrend. But a key to this was the volume, which was lacking on the breakout attempt. Still, the stock moved lower this week on, you guessed it — HIGHER VOLUME, which tells us big money is shedding the stock.
The indicators are weak, the cloud is turning red, while the RSI (relative strength index) is making lower highs, lower lows and is bending lower at a steep angle. Price action usually catches up to that downtrend, so look for more of it.
There may be support coming at the 200-day moving but we suspect ROAD has more downside beyond that level. Target the $65 price, and put in a stop at $94 just in case.
