Bearish Bets: Little Support for This Biotech, Video Chat & Ad Tech Co.

Why I Feel Bearish About the Market

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:

Uniqure Is Stranded on Bearish Island

It's not a horrible situation for a stock to gap higher and keep going. Heck, short squeezes can really take a stock further than anyone could think. But what about a bearish island reversal? A reversal down can really take that joy out of the bull, and continued downside makes it even more challenging. The chart of gene therapy company Uniqure (QURE) is a hot mess, with a downward channel created following that massive blowup in November.

Lower-highs, lower-lows are the textbook signs of a downtrend. Looking to the indicators, money flow is poor as the volume trends continue to reflect heavy institutional selling. The Moving Average Convergence Divergence is on a sell signal, and the low from last May is in clear view now. Let's target that $10 area, put in a stop at $23 just in case.

No Relief for Beaten Down Trade Desk

The bulls have been "under the desk" for some time now, afraid to show their faces. The Trade Desk (TTD) has been in a downward spiral for months, we have profiled this name here in Bearish Bets before as the stock just continues to sink towards zero. You really do not need much of a catalyst once the ball starts rolling down hill, but the obvious weakness in earnings gave it the push to move out of the bearish channel to the downside.

That is tough for TTD to recover from, the moving average convergence divergence on a sell signal the TRIX (bottom, triple smoothed percentage change indicator) is well below zero, the mark where the trend changes. Relative strength is oversold and as we know could stay that way for awhile.

Let's target the $15 area first for big move down, set a stop at $28 just in case.

Nasty Break for Zoom Puts Pressure On

A wide range means volatility is elevated, that was true for Zoom Communications (ZM) for awhile here but this recent break of higher lows is painful. Volume trends are bearish, recent days have seen elevated levels of selling, given the indicators are bearish there seems no place to go but down for Zoom.

The MACD is on a sell signal while the TRIX has crossed over but is still above zero. That won't last for very long. RSI (relative strength) is now oversold, but that is clearly not a buy signal. In fact, any rally should be short. Let's target the August 2025 lows at $68 for now, perhaps a lower target after that objective is met. Put in a stop at $85 just in case.

At the time of publication, Lang had no position in any security mentioned