Last Week's Best Performing PowerRatings' Stock: NTGR

Today's PowerRatings article looks at the best performing stock for the past five days: Netgear Inc. (NTGR | Quote | Chart | News | PowerRating)

The chart below shows that NTGR had consolidated in a tight range for three sessions between 10/21/06 - 10/25/06. This coincided with a PowerRating of 7 for three straight sessions between 10/23/06 - 10/25/06 suggesting it was likely to outperform the S&P 500 over the next five days.

Also we can use a technical indicator to further investigate a position. The 200-day simple moving average can quickly tell us the direction of the trend. In this case, is clearly above its 200-day moving average telling us that it is in a confirmed uptrend. This indicator along with a PowerRating of 7 made NTGR a strong buy on 10/23/06.

Over the next five sessions NTGR gained 22.76%.

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Darren Wong
Associate Editor
darrenw@tradingmarkets.com

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Reminder: We are in no way recommending the purchase or short sale of these stocks. This article is intended for education purposes only. Trading should be based on your own understanding of market conditions, price patterns and risk; our information is designed to contribute to your understanding.