Ciena's 1,000% Gain Comes to an End: 3 Stocks to Short This Week

This Mid-Cap Tech Stock Could Rise 40% From Here

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:

1. Alaska Air Chart in a Nosedive

It has been a rough couple of weeks for one of the bigger airline carriers Alaska Air (AAL) , but the bears have taken control of the stock. Right near the lows in November, this stock has taken on a lot of water recently and may continue to falter if global news (Iran, oil) does not improve.

We won't worry much about that, rather just look at the chart to find opportunities. As it is, the stock is in a strong downtrend, with lower highs and lower lows and is simply trying to find a bottom. Money flow just turned bearish, RSI is in a steep downtrend and is nearly oversold, but that is not reason to buy.

MACD is on a strong sell signal. Let's first target the November lows at $36, then below there if that is penetrated. Put in a stop at $52 just in case.

2. Ciena Earnings Could Not Hold Up Bullish Run

What an amazing run Ciena (CIEN) has been on over the past year. From the $40s, we saw this company reach a peak this month at $374, nearly a 1,000% gain during that time. An incredible move but now much of it may soon be challenged.

The huge down session on big volume this week sent a message to the bulls: It's over! (for now).

MACD has turned south, RSI is also moving lower and on a sell signal. Money flow, while strong, is going to start falling in the days ahead. The first big down session is usually a shocking event but when the stock settles in we often see more selling pull the stock down further. Let's target that 200-day MA on Ciena, that is down to $165, which seems quite big but certainly achievable if this trend down continues. Put in a stop at $320 just in case.

3. Victoria's Secret Stock Os on Sale, But Not a Buy

Not even strong earnings from Victoria's Secret (VSCO) could stop the sellers from blasting this stock this past week. Heavy volume trends turned bearish late in the week as investors responded to weaker than expected forward guidance from the company.

Money flow remains strong, but MACD is now on a solid sell signal. RSI made a lower high and is approaching oversold, not ever a good reason to buy. Volume was heavy on Thursday and that smacks of distribution and big money investors selling. We'll take that cue and target some big downside, to the 200-day MA at $35 or so, put in a stop at $60 just in case.