Heading into trading on Wednesday, the Nasdaq Composite has finished short-term overbought for a fourth day in a row. Similar strength is evident in the Nasdaq 100 which, basis the PowerShares QQQ Trust ETF (NASDAQ: QQQ), is also trading short-term overbought and at its highest levels in more than a year.
If these persistently overbought conditions have made it difficult to find Nasdaq stocks that are pulling back to levels where traders have been more inclined to buy than sell, then here are a trio of stocks from the Nasdaq that have not only pulled back to statistically significant levels, but have also earned significant ratings upgrades ahead of Wednesday’s session.
Shares of Infosys Technologies Limited ADS (NASDAQ: INFY) have closed lower for four days in a row heading into trading on Wednesday. Only trading in bull market territory since mid-month, INFY has finished at oversold levels for the past two back to back sessions, earning the stock a “consider buying” rating of 8 out of 10.
The pullback in INFY comes as the stock fell just short of taking out its six-month high from late October. Shares of INFY have a positive edge in the short-term of nearly 1%.
Also only recently trading above its 200-day moving average, shares of Fuelcell Energy (NASDAQ: FCEL) have sold off aggressively over the past few days, including a decline of more than 4% on Tuesday. Fuelcell Energy has ratings of 9 out of 10, putting the stock in the middle of our “consider buying” category. The pullback in FCEL leaves the stock just short of technically oversold territory ahead of Wednesday’s open.
After closing lower for three days in a row, and eight out of the last nine, Ebix Inc. (NASDAQ: EBIX) is among the most oversold stocks in our database of thousands of stocks. EBIX has been trading in bull market territory since late November, and the selling in the stock of late is in large part profit-taking in the wake of EBIX’s mid-month rally to its highest levels in nearly a year.
Closing lower by well over one and a half percent on Tuesday, shares of EBIX has “consider buying” ratings of 9 out of 10.
David Penn is Editor in Chief of TradingMarkets.com