10 stocks to watch for an impending rebound: Buy the dip in Disney?
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.
Performance Tracking of Previous Column (10/25)
There are 3 out of 10 selected stocksthat followed the suggested movement provided by the RSI indicator.
There are 3 out of 10 selected stocksthat followed the suggested movement provided by the RSI indicator.
What now?
During the previous week, the stock market has lowered slightly while Nasdaq 100 has made slight progress. This stock market movement reminds me of the "Nifty Fifty" from the 70s. Top companies' stock prices support the market until it crashed. Professor Chris Beyrer from John Hopkins is seeing another year of covid, which helped $Moderna (MRNA.US)$ rebound 14%, while I am seeing a good week ahead of us from the "Santa Claus rally".
During the previous week, the stock market has lowered slightly while Nasdaq 100 has made slight progress. This stock market movement reminds me of the "Nifty Fifty" from the 70s. Top companies' stock prices support the market until it crashed. Professor Chris Beyrer from John Hopkins is seeing another year of covid, which helped $Moderna (MRNA.US)$ rebound 14%, while I am seeing a good week ahead of us from the "Santa Claus rally".
"While the $Disney (DIS.US)$ stock slide is not exactly a bullish reaction to earnings, the losses aren't too bad and bulls are buying the dip," said TheStreet's Bret Kenwell. "That's about as much as investors could ask for in a situation where a and as Disney came up short on subscriber estimates."
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).
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 $PayPal (PYPL.US)$ $Best Buy (BBY.US)$ $Arista Networks (ANET.US)$
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