How to Catch Major Moves in the BioPharma Sector
Each day,
TradingMarkets publishes
7 Trading Ideas for Today, a selection of stocks from our daily indicators. TradingMarkets
Stock Indicators are based upon our latest quantitative research, and
highlight trading edges backed by our database of more than 7-million historical
simulated trades.
Biopharma company Medivation Inc.
(
MDVN |
Quote |
Chart |
News |
PowerRating)
showed up on our
2-Period RSI
Below 2
list (explained
below) last
Wednesday, May 9. This stock is up 271% over the past year and has a 52-week range of $3.80 to a
recent all-time
high of $20.50. There is definitely some major momentum behind MDVN and
should be bought on pullbacks, which is our main trading theme here at
TradingMarkets.Â
Our indicators display stocks like these on a daily basis, alerting you to
stocks that are ready to take off.
Let’s take a look at the
RSI indicator and the daily chart
to see how things played out.
1-day later, MDVN closed
+3.9%
2-days later, MDVN closed +5.9%
5-days later, MDVN closed
+14.4%
These are stocks that have a 2-period RSI reading below 2 and are trading above
their 200-day
moving average. Our research shows that stocks trading above their
200-day moving with a 2-period RSI reading below 2 have shown positive returns,
on average, 1-day, 2-days and 1-week later. Historically, these stocks have
provided traders with a significant edge. To learn more about our research into
stocks that have a 2-period RSI below 2, and how to use this information,
click here.
Obviously,
results like these do not occur every time, but
our quantified research clearly shows that the edges exist during extreme
oversold or overbought conditions.
Check out our
latest quantified research articles
here. If
you don’t already have a TradingMarkets subscription,
click here
for a free 7-day trial. Check back daily for more 7 Trading Ideas for Today,
and develop your own watchlist of stocks with historically-backed edges.
Darren Wong
Associate Editor
Reminder: We are in no way recommending the purchase or short sale of
these stocks. This article is intended for education purposes only. Trading
should be based on your own understanding of market conditions, price patterns
and risk; our information is designed to contribute to your understanding.