Bearish Bets: 3 Vulnerable Stocks You Should Consider Shorting This Week
Here's why we believe these names, including two with recent big reversals, 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.
Big Reversal in Danaher Is Uber Bearish
For the bulls there is nothing worse than a high-volume reversal to the downside. That recently happened to Danaher DHR — a nasty swing down with a massive gap left in the chart.
The volume generated to the downside this past week was massive as buyers who took the stock up Tuesday were absolutely massacred by the bears. Several key indicators reversed course, including the money flow (bottom pane).
Relative strength broke the support line as well (top pane), MACD (moving average convergence/divergence) is on a sell signal and support is seen around the $200 level. We'll target that, be patient for it, but put in a stop at $240 just in case.
Follow the Big Blue Arrow on Ashland
The downtrend is in place for Ashland Global ASH. The stock was hammered this past week but that should have not come as a surprise. With a series of lower highs, lower lows in place the trend was clearly bearish and leaning downward.
Relative strength recently tried to overcome some barriers but was soundly rejected (top pane). Money flow has been horrendous — all bearish all the time.
MACD just turned for a new sell signal too, and while the move down this past week was sharp and could have been an "all clear," we're not so sure. In fact, big selling begets more selling, and we think this stock makes a run to the $50's.
Let's target $57 on Ashland here, and put in a stop at $70 just in case.
Another Big Reversal on Corning Has the Bulls Very Worried
What looked like strong earnings and guidance this past week from Corning GLW seemed to indicate the company was looking to break out on the fundamental standpoint, as the stock move to new relative highs early in the session. But some nasty selling that happened later in the day dropped the stock like a bad habit amid much higher turnover.
What's that mean? Big money was selling the stock all session long.
The stock did find some support around the 20-day moving average, but the overwhelming volume to the downside may indicate this stock has lower levels to approach.
Money flow is positive but much less so after Wednesday's big reversal. Bullish momentum was reversed as seen by the relative strength index. MACD is on a sell signal as well.
There's just nothing bullish on this chart, but some lower targets exist, like the 200-day moving average at $42. Let's target that spot, and put in a stop at $53 just in case.
