10 stocks to watch for an impending rebound or pullback (Week of 11/15)

Technical DNA wrote a column · Nov 15, 2021 03:06

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.

10 stocks to watch for an impending rebound or pullback (Week of 11/15)

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).

Performance Tracking of Previous Column (10/25)
There are 5 out of 10 selected stocksthat followed the suggested movement provided by the RSI indicator.

What happen?
Shares of Tesla Inc closed lower on Friday, snapping an 11-week winning streak after filings showed CEO Elon Musk sold another block of company stock worth about US$700 million, taking advantage of a meteoric rally that vaulted the electric-car maker's value to over US$1 trillion.

The second round of hefty stock sales this week came just days after the world's richest person and Tesla's top shareholder tweeted that he would sell 10 per cent of his shares if users of the social media platform approved the move.

The electric-car maker's stock closed down 2.8 per cent at US$1,033.42 on Friday. The shares are up more than 46% this year following a sharp rally in October.
Overbought
$Pool Corp(POOL.US)$