Bearish Bets
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Let’s check out three stocks that appear technically bearish and ready to short.
While we will not weigh in with fundamental analysis on these issues, we will pop the hood for a look at the charts.
Let’s dig in:
Nike Is Just NOT Doing It
On Wednesday, Nike (NKE) disclosed results from their recent quarter, and suffice to say, investors are not impressed. In fact, there is no level lower that is telling investors or traders to add the stock. That makes it complicated for the bulls.
At some point, there is value, but trying to catch a falling knife is difficult. Given the very competitive field Nike is in makes it easy to see why the company faltered this past quarter.

There is a trade opportunity, though, but it is to the downside. The Relative Strength Index (RSI) is oversold, money flow is on a sell signal (since early March), and the moving average convergence divergence (MACD) reiterated a sell signal. Volume trends are bearish. You get the picture.
Let’s target the $40 area for this Dow Industrial stock, and put in a stop at $51 just in case.
RH Is in Need of Serious Restoration
Just a horrific quarter of earnings for RH (RH), the former Restoration Hardware. The stock has been punished badly for weeks, with a trend of lower highs and lows, our textbook definition of a downtrend.
No question the volume trends have also been bearish, with the MACD still weak while money flow is negative. This tells us the big money is exiting the stock hand over fist.

Nothing really seems to provide support here as the stock is at multi-year lows (2020). There’s nothing worse than a stock that doesn’t perform well when the market is rising, so let’s set a target of $90, which might take time but is a good zone for downside. Put a stop at $120 just in case.
Hold the Fries With Lamb Weston
In case you wondered, Lamb Weston (LW) is the largest supplier of potatoes to McDonald’s (MCD) for their famous french fries. They also serve Yum! Brands (YUM) and food distributors, too.
This last quarter saw a deep dive in Lamb Weston’s revenue and earnings, and the stock continues a slide that started in November 2025. Lower highs, lower lows remain the issue, which is the textbook definition of a downtrend.

Every potential rally has been sold down, money flow is bearish, and the MACD is now on a new sell signal. There is more downside here, in our view.
We think the stock will eventually move into the $30 area, so let’s hold out for that price, but set a stop at $45 just in case.
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This article is being shared as premium content from TheStreet Pro. It was written by Bob Lang

