10 stocks to watch for an impending rebound or pullback (Week of 10/18)
Hello mooers:
An overbought stock is believed to await a correction or pullback, while an oversold stock has the potential for a price bounce.
We selected a few stocks that contain potential investment opportunities with RSI indicator to find out what the most overbought and oversold companies in S&P 500 today are.
Overbought& Oversold definition
A stock would usually be considered overbought when the RSI > 70 and oversold when RSI < 30.
According to the theory created by J. Welles Wilder Jr, when the RSI < 30, it is a bullish sign (buy signal), and when RSI > 70, it is a bearish sign (sell signal).
Starting this week, this column would change from updating daily to weekly, since movements of stock prices often take a few days before they follow the suggested pattern. We would be tracking the performance of previously selected stocks from now on.
Performance Tracking of Previous Column (10/08)
There are 8 out of 10 selected stocks that followed the suggested movement provided by the RSI indicator.
There are 8 out of 10 selected stocks that followed the suggested movement provided by the RSI indicator.
We collect stocks from S&P 500 as it contains most of valuable companies.
Want to screen the market by yourself? Read:How to use a stock screener
Want to learn more about technical trading? Read: Technical Analysis 101:Introduction to technical indicators
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
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Mars Mooo :
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