High Probability Stock Trading Update: DOW, MS, WMB
Ahead of trading on Tuesday, there are a number of stocks that have pulled back into oversold territory above the 200-day moving average. Looking only at the blue chips, the stocks that everyone knows and loves, there are at least five stocks that short term traders should keep an eye on over the next few days.
Of these five, three have Stock PowerRatings of 8. Recall that our research into short term stock price behavior indicates that stocks with Stock PowerRatings of 8 have outperformed the average stock by a margin of more than 6 to 1 after five days. The other two stocks have Stock PowerRatings of 7 and are worth watching especially if sellers remain dominant in the first few days of the holiday-shortened week.
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^DOW^
Stock PowerRating: 8
Among the more oversold of the blue chips, Dow broke down from a short term consolidation to close in oversold territory on Friday.
^MS^
Stock PowerRating: 8
MS has been trending lower since the first half of January and closed in oversold territory on Friday. Note how the low Stock PowerRatings (in red) helped anticipate the top and reversal in the stock.
^WMB^
Stock PowerRating: 8
Williams Companies has closed lower for four out of past five days, with the most recent close in oversold territory above the 200-day moving average.
Also of note: ^DELL^ and ^MON^, both with Stock PowerRatings of 7.
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