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With Friday's selling continuing today on Monday, a number of high PowerRatings stocks are pulling back further above their 200-day moving averages. Here are a few of the stocks that are still moving lower a few hours into trading.
Down four days in a row heading into today's trading and moving lower again early is Children's Place Retail (PLCE | Quote | Chart | News | PowerRating). The stock has earned a PowerRating of 9 and has lost more than 18% from June 1st until this morning.
Should PLCE close lower today on Monday, it would represent the stock's fifth consecutive down close. We have found that stocks that close lower for five days in a row above the 200-day moving average have produced positive returns in one-day and one-week timeframes.
Moving lower for a fourth day in a row is Avis Budget Group (CAR | Quote | Chart | News | PowerRating).
CAR also has a PowerRating of 9 and topped out in early June as a number of stocks rallying from the March lows have done. With a 2-period RSI of less than 6, CAR is likely to attract buyers at its continues to move toward new short-term lows.
Sharing a PowerRating of 9, Abercrombie & Fitch (ANF | Quote | Chart | News | PowerRating) has closed lower for three days in a row and is moving lower again on Monday. The stock plunged lower late last week and in continuing to pull back has moved to within cents of its 200-day moving average.
The pullback in ANF represents the stock's first major correction since breaking out above its 200-day moving average in late May.
To round out our 5 PowerRatings Stocks for the Next 5 Days, here are another two stocks – both with PowerRatings of 8 – that traders should keep an eye on over the next few days, particularly if sellers remain aggressive and increase the likelihood that either or both of these 8-rated stocks earn upgrades to 9.
Volterra Semiconductor (VLTR | Quote | Chart | News | PowerRating) has been moving sideways to lower over the past few days and is now at its lowest levels of the month of June. The stock has a 2-period RSI of less than 8 intraday on Monday.
With a 2-period RSI of less than 12, Royal Gold (RGLD | Quote | Chart | News | PowerRating) is among a number of increasingly oversold gold stocks that could continue to become even more oversold should the rally in the U.S. dollar continue. As with Volterra, look for a PowerRatings upgrade to 9 as one signal that RGLD has reached truly oversold extremes.
Our highest Short Term PowerRatings stocks have outperformed the average stock by a margin of more than 14 to 1 after five days. Click here to start your free, 7-day trial to our Short Term PowerRatings!
David Penn is Editor in Chief at TradingMarkets.com.
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