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

Each week Trifecta Stocks identifies names that look bearish and will current fascinating investing alternatives on the quick facet.

Using technical evaluation of the charts of these shares, and, when acceptable, latest actions and grades from TheAvenue’s Quant Ratings, we zero in on 5 names.

While we is not going to be weighing in with elementary evaluation, we hope this piece will give buyers focused on shares on the way in which down a superb start line to do additional homework on the names.

Biogen

Biogen Inc. (BIIB)  lately was downgraded to Hold with a C+ ranking by TheAvenue’s Quant Ratings.

Talk a couple of reversal of fortune! This huge biotech lately jumped increased on good headlines, then crashed onerous two days afterward some devastating drug information. That’s sufficient for gamers to surrender on the identify, and which means extra draw back is probably going coming.

Moving common convergence divergence (MACD) is on a promote sign whereas the cloud has turned crimson as soon as once more. Volume developments are poor apart from the one-day shot increased, however the bulls will seemingly really feel the wrath of ache now.

Short right here with a cease at $260; search for a transfer to $200 or so.

Exelixis

Exelixis Corp.  (EXEL)  lately was downgraded to Hold with a C ranking by TheAvenue’s Quant Ratings.

The oncology-focused biotech firm just isn’t wonderful in any respect. This inventory is bending decrease on accelerating quantity, endlessly. The Relative Strength Index (RSI) is steep and sloping down, and there may be seemingly extra unfavourable value motion to return.

Money circulate could be very poor, and whereas there may very well be a minor pop towards the 200-day shifting common it is prone to be weak. The cloud is crimson; this chart is kind of bearish.

If quick, put in a cease at $22 however look to trip this into the mid-teens.

This commentary is an excerpt from “5 Bearish Bets” a weekly characteristic despatched to subscribers of Trifecta Stocks. Click here to be taught extra about this portfolio, buying and selling concepts and market commentary product.

Want to search out out the opposite shares we predict look good quick this week and easy methods to play them? Click here for a trial subscription to Trifecta Stocks and get “Bearish Bets” every week!

— Bob Lang and Chris Versace are co-portfolio managers of Trifecta Stocks.