Bearish bets: 3 Nasdaq stocks you should consider selling short this week
Each week we identify names that look bearish and may present attractive investment opportunities on the short side.
Using technical analysis of these stocks’ charts and, where available, recent stocks and ratings from TheStreet’s Quant Ratings, we focus on bearish names.
While we’re not going to weigh in on fundamental analysis, we hope this article gives investors interested in falling stocks a good starting point to do some additional research on the names.
Meta Platforms Inc. (FB) was recently downgraded to Hold with a C rating by TheStreet’s Quant Ratings.
This mega-cap name has seen better days. Facebook’s parent company showed all sorts of distributions on the chart, starting with weak money flow and a bearish moving average convergence divergence (MACD) crossover.
The relative strength is extremely weak and the cloud is red and widening, indicating further downsides to come. The 20-day moving average has also been good resistance on the downside, and it will be a challenge to break through until the stock can flatten out. It seems unlikely here.
There is meat left on this bone even after a fairly sharp downward movement. Target the $160 zone, but stop at $203 just to be sure.
Take-Two Interactive Software Inc. (TTWO) has been downgraded to Hold with a C+ rating by TheStreet’s Quant Ratings.
The interactive games producer is playing a tough game here, with lower highs and flattening around the $155 area. Silver flow has just turned bearish and MACD has crossed for a bearish signal.
The Relative Strength Index (RSI) is down sharply with a very steep slope, which tells us that the price action is pretty poor.
The best the bulls can hope for is a bounce off the trendline, but that could be broken soon enough and a test of around $140 could come.
Ross Stores Inc. (ROST) was recently downgraded to Hold with a C+ rating by TheStreet’s Quant Ratings.
Retailers have been on the chin this quarter, and specialty stores are really showing weak relative strength. Apparel and home fashion retailer Ross Stores is one such name, and frankly, with a series of lower highs and lower lows, this stock is in trouble.
MACD is now on a sell signal as the money flow has just turned bearish. The recent sale was on strong sales; volume trends are bearish.
We could see the $70 before long, and that wouldn’t surprise us. Aim for this level, but stop at $96.
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