10 stocks to watch for an impending rebound or pullback (Week of 11/08)

Technical DNA wrote a column · Nov 8, 2021 02:47

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 11/08)

Performance Tracking of Previous Column (10/25)
There are 3 out of 10 selected stocks that followed the suggested movement provided by the RSI indicator.

$Starbucks (SBUX.US)$ was the outstanding stock picks of last week.The Starbucks Chart: Starbucks is trading over 11% higher than the Oct. 29 low of $104.02. On Friday, the stock looked to be printing a bullish kicker candlestick on the daily chart, which indicates higher prices may come again on Monday.

Starbucks smashed through a resistance level at $115.57 late Friday morning and looked to be heading toward an upper gap that was left behind on Sept. 15 between $117.02 and $118.36. Starbucks also has a gap below between $112.42 and $113.14. Gaps on charts fill about 90% of the time so it is likely the stock will trade into both ranges at some point in the future.

Oversold
$Moderna (MRNA.US)$