Bargains in the stores after the major shopping holidays of the year are almost as traditional a part of the year as the holiday’s themselves. Here are a trio of top Nasdaq stocks that have begun to pull back after rallying to new short-term highs.
Shares of Costco Wholesale (NASDAQ: COST) have pulled back for three out of the past four trading days and are increasingly oversold. The stock fell to extremely oversold levels in the first half of December, and is back trading at new, 5-day lows in bull market territory.
Pulling back by more than 2% on the final trading day of 2011, shares of Ross Stores (NASDAQ: ROST) represent another instance where traders may be locking in gains after an extended run of multiple, new highs and overbought conditions. Still up more than 10% from its last 10-day closing low six weeks ago, ROST could easily find itself oversold on any significant follow-through selling when trading begins in 2012.
Expedia Inc. (NASDAQ: EXPE) has been trading in a very wide trading range since August, for the most part trading in bull market territory. Ahead of trading on Tuesday, the stock has finished lower for three days in a row. The selling in the stock has put EXPE at its most oversold since its last pullback to new, short-term lows, a pullback that anticipated a rally of nearly 9% in eight trading days.
Traders looking for strength to fade below the 200-day moving average want to consider the overbought conditions in manufacturers and heavy industrials like Avery Dennison Corp (NYSE: AVY) and Weyerhauser Co. (NYSE: WY). Both stocks began trading on Friday with “consider avoiding” PowerRatings of 3 out of 10 or less, and remain vulnerable to a short-term reversal to the downside as of Friday’s finish.
All of the stocks in today’s report were available from research and data available through The Machine. To learn more, click here.
David Penn is Editor in Chief of TradingMarkets.com