Bearish Bets: Cooling Solar Power Name and 2 More Stocks to Short
These three well-known names were knee-capped recently and we see more downside to come.
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Let's check three well-known stocks, some of which make products you've probably bought — or have eaten — recently. Each one appears technically bearish and ready to short.
Let's dig in:
First Solar Starting to Cool Off
Tops happen frequently, but if you're bullish or bearish, what matters most is the last top. That is not always apparent unless there is followthrough to the downside or a heavy volume event that ensues.
For First Solar (FSLR) there is a chance of more downside here, at least to the 100-day moving average (MA) and even a more aggressive target, the 200-day MA. That would lead to the $200 level, a nice move down for a short play.
Indicators are weak, the MACD is on a sell signal and money flow remains poor. With some downside followthrough, we'll have what we need here, let's target $195 or so and put in a stop at $275 just in case.
Penguin Solutions Needs a Break
What a mess of a chart for Penguin Solutions (PENG). The stock got hammered this week on heavy volume, but it was all about that reversal in price. The stock opened higher and moved down sharply on heavy turnover, the stuff of big institutional selling. Money flow is weak and if there is a continuation move that seems to lock in lower prices ahead.
There would need to be a powerful move upward to negate Wednesday's huge reversal. RSI is turning down and the MACD is now bearish. We'll target the $16 area and then below there at $14.5 or so, the April 2025 lows. Very bearish here.
Skyworks Solutions Has Momentum to the Downside
One thing we can count on: If there is a big downside move on volume, there will be more to come.
Skyworks (SWKS) has been plagued by sellers for months, every rally has been met by more selling, and we see those bars circled on the chart. Just nobody wants to be long this stock for very long, if at all.
Money flow is poor and the MACD on a sell signal, lower highs and lower lows is our text book pattern of a downtrend. You know the drill, we'll target the low 50s here and perhaps a move down to the mid 40s, we'll put a stop in at $70 just in case.
