Bearish Bets: How to Short Carvana and Other Names Headed Lower
A pair of auto names and an online retailer have seen their stocks cut down significantly.
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Let's check out three stocks that appear technically bearish and 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:
Wayfair: Nothing Good Happens Under the 200-Day Moving Average
A break of the 200-day moving average by Wayfair (W) this week spells trouble. There is a saying on Wall Street: "nothing good happens under the 200-day MA," especially when a shocking move down below there occurs. Bulls are scrambling to sell, worried the stock may be headed further south.
High volume selling this week on Wayfair shows the bulls are heading for the exit, fairly quick. Money flow is mostly negative, MACD is solidly on a sell signal, while RSI is bending lower at a steep angle. This often means more downside ahead.
With the stock nearly oversold, we could see a bit more down then a bounce, but ultimately we see the stock failing every rally attempt and likely moving down to the 40s. Let's target that area, be patient but put in a stop at $101 just in case.
Avis Budget Group Gets Wiped Out and Fails to Hold the Channel
A tough few months for Avis (CAR) , since breaking lower in August the stock has been on a smooth ride down. Lower highs, lower lows is our textbook definition of a downtrend. Money flow is weak and has been since the stock broke down hard last summer.
Check out the heavy turnover in late October: no question the big money was shedding the stock. When you see higher volume and the stock not moving much that is your clue. RSI is stuck below 50, MACD on a sell signal even though there is a gap lower this week there is no support until $70, which is our next target area for a nice profit. Let's put in a stop at $103 just in case.
Carvana Has This Bearish 'Feel' To It
It has been very difficult year in 2026 for Carvana (CVNA) , a stock that just weeks ago was being touted by many as "teflon" and a "cannot sell" stock. Well, the opposite happened, February has been a forgettable month for Carvana, with a downtrend channel, lower highs and lower lows, which fits our definition of a downtrend.
Money flow is poor, MACD is now on a double sell signal and volume trends are bearish. You get the picture — if you're bullish you put this one in reverse.
Let's target the $200 area here, putting in a stop at $395 just in case. This stock is very bearish and can have very wide swings.
