5 PowerRatings Stocks for the Next 5 Days: RNOW, MTG, UN, RBA, HANS
Stocks pushed higher into overbought territory on Friday, helping mean reversion traders exit their trades on strength.
In fact, two out of the three stocks in my last PowerRatings report, “3 PowerRatings Pullbacks for Short Term Traders,” managed to close above their 5-day moving averages on Friday. These two stocks are Ardea Biosciences
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PowerRating), which gained more than 4% and Mercado Libre
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PowerRating), which soared by more than 6% on Friday.
A third stock, RightNow Technologies [RNOW|RNOW| continued to sell-off on Friday and remains an oversold stock that short term traders should keep an eye on over the next few days. RNOW has a PowerRating of 8 and a 2-period RSI of less than 6. The stock has closed lower for four out of the past five trading days above the 200-day moving average.
Other stocks I have highlighted this week have also rallied into strength. Prudential Financial
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PowerRating) closed above its 5-day moving average on Friday, as did Whole Foods Markets Inc.
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PowerRating). LG Display
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PowerRating) closed above its 5-day moving average on Thursday, and followed through to the upside on Friday.
Read more about PowerRating performance in our recent special: PowerRatings Does It Again — Results for 2008..
That leaves only MGIC Investment Corporation
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PowerRating), which has closed lower for four out of the past five trading days and has been drifting closer to its 200-day moving average. Like RNOW, MTG has a PowerRating of 8.
To RNOW and MTG, I will add another three stocks to round out our 5 PowerRating Stocks for the Next 5 Days. All five stocks in today’s report will have PowerRatings of 8. Recall that our testing reveals 8-rated stocks to have outperformed the average stock by a margin of more than 6 to 1 after five days.
Unilever
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PowerRating). PowerRating of 8. Unilever has traded sideways over the past few days, closing lower and earning a lower and lower 2-period RSI. Additional selling to bring the stock’s RSI into the single digits will be among the first signs of potential opportunity to the long side in this stock.
Ritchie Brothers Auctioneers
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PowerRating) PowerRating of 8. RBA has sold off aggressively in the past few days, helping drive the stock’s 2-period RSI down below 6. RBA had been trending higher before the pair of sharp selling days and it was the severity of the selling — which included a gap down on Thursday — that has helped create oversold conditions in the stock.
Hansen Natural Corporation
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PowerRating). PowerRating of 8. Sellers have been very aggressive with shares of HANS, selling the stock not just for the past three days, but for 10 out of the past 12. As such, the stock has earned not just a PowerRating of 8 but a 2-period RSI of 5 as of the Friday close.
Does your stock trading need a tune-up? Our highest Short Term PowerRatings stocks have outperformed the average stock by a margin of more than 14 to 1 after five days.
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