Bearish bets: 3 falling stocks you should think about shorting this week

Each week, we identify names that look bearish and could offer interesting investment opportunities when shorting.

Using technical analysis of the charts of those stocks, and where appropriate, recent actions and ratings from TheStreet Quantum Ratings, we focused on three names.

While we won’t consider fundamental analysis, we hope this section will provide investors interested in stocks that are on the decline a good starting point for further research. about these names.

ADP is in the dump

Automated Data Processing Company (ADP) Rated Buy with a B rating by TheStreet’s Quantity Rating.

The cloud-based HR provider’s chart shows a severe downtrend, with the stock failing to keep up with the rest of the market. That trend is also reflected in weak money flow and a drop in the Relative Strength Index (RSI, top bracket).

The moving average convergence divergence (MACD) is giving a sell signal and the cloud is red towards lower prices. The support was broken on Wednesday, so we could see a move to the July low — maybe $210. Place a stop at $240 just in case.

The first savings plummeted

First Savings Financial Group Inc. (FSFG) has been downgraded to Hold with a C+ rating by TheStreet’s Quantity Rating.

This banking joint stock company fell seriously in December and barely recovered. The banking group has been strong but this slow group can’t seem to catch a good buy.

First Savings doesn’t move too much each day, but the chart shows a downtrend in place and a bearish flag formation. It means that sellers are still in control after the recent price increase. The cloud is red and the RSI is back. We could see a 5% to 7% drop from the January lows. Target $19.20 area, place stop at $21.50.

Production mission goes bad

Mission Produce Inc. (AVO) has been downgraded to Sell with a D+ rating of TheStreet’s Quantity Rating.

The fresh produce distributor had a bad report last month and failed miserably. Money flow is falling and while a return has been seen it is mostly a bear flag.

The cloud is red and the stock is below all the moving averages. The RSI is curving lower at a steep angle, so more downsides are likely to come. Any day now, the bear flag will drop lower, so it’s a good short game here. Target the $9 area, place the stop at $13.