10 stocks to watch for an impending rebound or pullback (Week of 10/25)

Technical DNA wrote a column · Oct 25, 2021 10:59

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).

10 stocks to watch for an impending rebound or pullback (Week of 10/25)

Performance Tracking of Previous Column (10/08)
There are 4 out of 10 selected stocks that followed the suggested movement provided by the RSI indicator.

Apparently, there is no negative indicator that can predict the price drop of Tesla. The share price of the company rose to a new high in expectation of the company posting surprising earnings.

Two stocks have rebounded over 5% among the oversold list: REGN and CCI.
OverBought
$Tesla (TSLA.US)$