Price Targets for Oracle and 2 More Bearish Stocks to Short
These three names are going against the tide of the market.
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Let's check on 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. Oxford Industries Chart Takes Another Beating
It is tough owning a stock that is performing miserably, but even worse when the rest of the stock market is doing so well.
Oxford Industries (OXM) has been in an awful downtrend for months, way back in April, the stock has been making lower highs and lower lows. That is our textbook definition of a downtrend. Money flow has been neutral to bearish through that entire time.
RSI has turned lower while the MACD is about to turn down again for another sell signal. There's nothing bullish in this chart, so we could see a continuation of the down move here, let's target the $30 area and eventually $25, put in a stop at $39 just in case.
2. Oracle Continues to Circle the Drain
That move by Oracle (ORCL) back in September was impressive, but even more spectacular is how this stock completely lost those gains and then some in just three short months. No question the stock got way ahead of itself, printing the high a day after posting those earnings in September, and this week a miserable move down as it remains in the downtrend channel.
We created that channel to highlight the lower highs and lower lows in Oracle, with the down move in plain view. No disputing this fact.
Money flow had been leaking for weeks while the stock sat in that channel, making lower lows along the way. Heavy volume to the downside is problematic for Oracle now, and we see continued downside to $170 to fill a gap and then $150 where there is good support. Let's target those two spots, put in a stop at the 200-day MA, or $212.
3. Wave Life Sciences Looks Ready to Start a Down Move
This Wave Life Sciences (WVE) really moves sharply, including this week with a huge move up and then right back down. But we see more downside to come here.
The heavy volume on that surge day was impressive and turned the indicators bullish, but the weight of the bearish anchor is heavy, and this could very soon fill that monster gap lower in the single digits.
That may seem unlikely, if not impossible, but this stock has little to support a move higher. Buyers were exhausted this week on that spike higher but volume trends shifted to bearish later in the week.
We could see this stock come down to the August highs, call it $10.25 or so, and then we could figure out the next move. Let's aggressively target that level, though it could take some time. Put in a stop at $21 just in case.
