Bearish Bets: 3 Stocks to Short This Week
These names have hit a rough patch. Here's why we believe they could fall even further.
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Let's check three stocks that appear technically bearish and look 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.
Blackline Has Certainly Crossed a Key Line in the Sand
They say nothing good happens below the 200-day moving average, and that is certainly the case for Blackline BL. This stock got walloped this week on extraordinary volume, all of it to the downside. The chart is a mess now and no question the August lows are going to come into play (low 40s). A stock that gets ambushed like this has a hard time recovering and often sees more lows as even more sellers exit the stock.
Money flow is now bearish while the MACD is crossing over for sell signal. We see at least a run short term to the September lows around $46, let's target that first and then look for a bit more downside following. Buy stop at $55 just in case.
Teradata Gets Mauled by the Bears
This stock was obliterated this week on massive downside volume. There was nowhere to hide on Teradata TDC as anyone who owned it seems to have cut and run. That makes sense after TDC missed on earnings and guidance, but as we see it blew a hole in the chart as big as the Grand Canyon. This is very bearish and is likely to continue.
Money flow is still negative while the MACD last week just rolled over to sell signal, so that one was an early indicator. RSI is now oversold but that is never a sign to get long, in fact it is likely to fall even further. The stock is at a new 52-week low, much like the drop in August last year but we don't see the recovery being quite the same. Let's target the $20 area first, put a stop in at $28 just in case.
Zillow Group Chart Shows Bulls Have Plenty of Doubters
Selling houses is a challenge when rates are elevated, and stocks like Zillow Z are feeling the heat of less demand during this high rate period. The company reported earnings this week and missed badly, the stock taken to the woodshed as a drop to the 100-day moving average was bought.
Could that have been the bottom of this move? Possibly, but with the heavy volume and weight of the price chart and being below key moving averages the down move is going to be difficult to overcome.
MACD is about to confirm a rollover, RSI is heading lower and the 200-day moving average looms large, that is lower at the $60 level. Let's target that spot, put in a stop at $84 just in case.
