DataTrader: Will Traders Zig with Zagg?
Shares of Zagg Inc. (ZAGG) have pulled back for five out of the past six trading days, and are have just finished in oversold territory for the first time in more than a month. Does this mean that the makers of Invisible Shield – protect your smartphone from drops, scratches and scrapes! – has finally pulled back enough to attract buyers once again?
The correction in ZAGG comes in the wake of the stock’s move back into bull market territory after dipping below the 200-day moving average in late September and staying below that level for just eight trading days. After becoming overbought in the first few days and weeks of October, sellers began to regain control over the market for shares of ZAGG. Buyers managed to keep the stock trending upward in the short term until near the end of October. But an overbought close on October 28th was enough to bring the sellers off the sidelines, sending the stock lower for five out of the following six trading days.
ZAGG has a positive edge of more than 1% heading into trading on Tuesday and, before closing lower again on Monday, had a rating of 7 out of 10 in our proprietary stock rating system. Given the pullback of more than 1% in Monday’s session, the likelihood of the stock earning a rating’s upgrade to our “consider buying” range of 8 to 10 out of 10, traders may want to keep an eye on ZAGG over the next few trading days.
Zagg Inc. was trading at a 52-week high in early August and is now trading lower by more than 25% from those levels. Among the company’s competitors are firms like Forward Industries (FORD), which makes protective coverings for handhelds, as well as other cases and soft-sided storage.
Quantified data and research on stocks like ZAGG is available each evening after the market close. To learn more, click here.
David Penn is Editor in Chief of TradingMarkets.com