Bearish Bets: Time to Short These Three Stocks
These shares are charting a path downward.
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Let's check three stocks that appear technically bearish and look ready to short. We will not weigh in with fundamental analysis on these names, but will pop the hood for a look at the charts.
Accenture Continues Its Descent
Accenture ACN reported its latest earnings, and while they did beat estimates, their guidance was a bit light. That set off more selling, giving the bears a head of steam as they continue to move the stock toward the June 2024 lows. That level is not far from current prices, we'll call it $275. That would be another 10% lower, and at that time we could re-evaluate to see if there would be a conditional sell on the shares.
Notice the indicators are all bearish; the Moving Average Convergence Divergence indicator has been on a bearish crossover for weeks while the money flow is negative. We do have the Relative Strength Index at an extreme reading, so there could be a pull up, but that may be another short opportunity.
For now, let's go with the momentum and target $270, and put a stop in at $315 just in case.
Joyy Inc. Chart Shows Little ... Joy
A breakdown from a triangle formation is nothing to be ignored, and if there is follow-through down on Joyy YY then the stock is going to be in big trouble. There are plenty of downside targets here in this name all the way down to the October lows at $32. The technicals are full-on bearish.
We can see the weakness in money flow, still very negative while the stock whirls down. Thursday's move down may have stopped at the 100-day moving average, but volume levels on the downside are elevated, meaning the big money is selling hard. Relative Strength Index (as seen in the top pane) is weak and the cloud (to the right) is about to turn red.
MACD has been on a sell signal for weeks. There's nothing positive here, but we can short the name here and target the $32 level for a nice gainer.
Globant Turns South
Just horrible downside action in Globant GLOB , an IT and software development company, over the past month. Lower-highs and lower-lows define the downtrend action here with heavy volume and poor technicals. That spells trouble, and while the stock has already been slammed over the past month there seems to be no let up to the selling.
RSI is oversold, but you know what? It has been in that condition for weeks, and if you believed it was too late to short, then you missed some good downside action. Money flow is bearish, too, as the downtrend channel is in place.
Nothing bullish here, so we should just follow the trend, targeting $105 and then a bit lower if that objective is hit. Place a stop at $155 just in case.
At the time of publication, Lang had no position in any security mentioned.
