Bearish Bets: 2 Tech Stocks You Should Consider Shorting This Week

realmoney2021-05-10

Each weekTrifecta Stocksidentifies names that look bearish and may present interesting investing opportunities on the short side.

Using technical analysis of the charts of those stocks, and, when appropriate, recent actions and grades from TheStreet'sQuant Ratings, we zero in on five names.

While we will not be weighing in with fundamental analysis, we hope this piece will give investors interested in stocks on the way down a good starting point to do further homework on the names.

Alteryx

Alteryx Inc. (AYX)  recently was downgraded toSellwith a D+ rating by TheStreet'sQuant Ratings.

This provider of analytics platforms has fallen hard since peaking in early February. Rough earnings stoked the selling and it has been straight down ever since. The channel is not symmetrical, but we can see a series of lower highs and lower lows.

Money flow is poor and the Relative Strength Index (RSI) cannot seem to get going. This tells us Alteryx is relatively poor versus the rest of the market. Moving average convergence divergence (MACD) is on a sell signal and the cloud is deep red.

If short, target a move to $65 or so but put in a stop at $83.

Pinterest

Pinterest Inc.  (PINS)  recently was downgraded toSellwith a D+ rating by TheStreet'sQuant Ratings.

The company behind the popular app of the same name has been beaten like a piñata lately, with a gap lower on earnings and not much energy from the dip buyers. The stock continues to be distributed with high volume and a MACD sell signal.

The cloud just turned red and the 200-day moving average is not far below here. A gap is still open in the $40s and that could be the place to target if short.

Put in a stop at $75 just in case.

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