We have identified names that look bearish and may present interesting investing opportunities on the short side. Using technical analysis of the charts of those stocks and appropriate recent actions, we have zeroed in on 2 names.
Clarivate
Clarivate Plc (NYSE:CLVT), information technology and analytics company has slammed the brakes on some major volume this month. The stock has dropped 30% since the beginning of the year, resulting in remarkable price activity. For the bulls, this is bad news.
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Money flow is negative, and the Relative Strength Index (RSI) has reached its maximum level of over-buying. Of course, that’s not a buy signal; the cloud is also red, and the MACD is still rolling over. A pull-up may happen at any time, and that would be a great place to get short.
If you are a short seller, consider a short opportunity in the $17-$19 range, with a target of $11 but a stop at $22. Don’t hang in long to avoid getting caught in a short-squeeze.
Veeva Systems
Veeva Systems Inc. (NYSE:VEEV), a cloud-based software supplier for the life sciences industry, is another high-valued stock that has plummeted. The stock has lost more than 30% of its value since peaking at around $340 and is expected to fall considerably worse.
Money flow is low, and the Relative Strength Index (RSI) is oversold, but neither of these factors indicates a buy signal. The cloud is also red, with a bearish Moving Average Convergence Divergence (MACD) indication.
Currently, the stock has broken its support level, and the downtrend is still continuing. Investors should watch out for a drop to around $195 (some long-term support), but they should also keep a stop-loss around $245.
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