3 Top PowerRatings Stocks for Traders: NOVN, ABCO, ATNI
With the markets still more or less in neutral mode, it is interesting to see the high number of 9- and 10-rated stocks in our Top 25 PowerRatings Stocks roster as of Monday morning.
This suggests that, whatever the major markets are doing, there may still be abundant opportunities for short term traders to pick up extremely oversold shares that buyers have not yet stumbled across.
Today’s report includes three stocks that are among the most oversold stocks in our database — as established by the fact that all three have PowerRatings of 10, our highest PowerRating. Our research into short term stock price behavior indicates that stocks with PowerRatings of 10 have outperformed the average stock by a margin of more than 14 to 1 after five days.
Noven Pharmaceuticals
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PowerRating) has closed lower for four days in a row and is moving lower again today on Monday. The stock crossed above its 200-day moving average in May and, by the second half of June was moving almost vertically.
Now coming under some overdue profit-taking, NOVN has lost more than 10% in July and now has an extremely low 2-period RSI of less than 1 early in trading Monday morning.
Another stock that has come under exceptionally heavy selling pressure in recent days is The Advisory Board Company
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PowerRating).
ABCO broke down from a sideways consolidation in just as July began and has fallen more than 13% since. That breakdown has featured nine consecutive lower closes and ABCO is moving lower again on Monday. In fact, including Monday, ABCO has had a 2-period RSI of less than 1 for the past five days.
Atlantic Tele-Network Inc.
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PowerRating) is one of the few 10-rated stocks that is getting a bid Monday morning.
In some ways, ATNI resembles ABCO insofar as a short term consolidation in June has led to a breakdown in July. ATNI has made six consecutive lower closes leading into Monday’s trading and has developed extremely low 2-period RSIs of less than 2 for the past three days.
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.