3 Top PowerRatings Pullbacks for Traders: STSI, ORI, EVR
With stocks off to a very strong start on Thursday — the day before Good Friday — a number of our higher PowerRatings stocks have already begun to move higher. An hour into trading on Thursday, for example, Neutral Tandem Inc.
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PowerRating) which had a PowerRating of 9 going into trading today, is now up more than 3%. Another 9-rated stock, Haverty Furniture Companies Inc.
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PowerRating) has gained more than 5% so far in early trading.
This said, there are a number of high PowerRating stocks that have not yet responded to the abundant buying pressure on Thursday, as such, these stocks may still represent opportunities for traders looking for to take advantage of the generally bullish mood to buy those shares that have not yet been spotted by traders looking for oversold stocks ready to move higher.
First up is Star Scientific Inc.
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PowerRating), which had a PowerRating of 8 coming into Thursday trading and a 2-period RSI of 11.59
The stock has been trading in a tight 60 cent range since mid-March. As the stock has moved to the lower end of the range, its PowerRating as increased. Traders may want to wait for a stronger move lower, or a breakdown from the range, before taking up STSI as a short term trade to the upside. As always, let upgrades in PowerRatings and decreased 2-period RSIs be your guide.
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Another stock traders might want to keep an eye on is Old Republic International
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PowerRating). Like STSI, ORI has been trading in a range since mid-March and has a PowerRating of 8. The stock only recently rallied above its 200-day moving average and has since pulled back toward that level.
Lastly, let’s take a look at a stock like Evercore Partners
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PowerRating). With its PowerRating of 8 and 2-period RSI of 8.52, what is interesting technically about this stock is how it failed to follow-through to the upside after making a higher high on April 3rd.
This failure has resulted in a pullback in EVR, which has moved lower for the past two days and is moving lower today on Thursday. Should EVR continue to fall, perhaps even taking out the 2-period RSI low of 8.52, then there is a likelihood that the PowerRating for EVR will increase — as would the stock’s attractiveness as a potential long candidate for short term traders.
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David Penn is Editor in Chief at TradingMarkets.com.