Swing Trading: Stocks Pullback to Oversold Territory Heading into August
Stocks in general finished off their lows on the final trading day of the week. Despite a weak open, traders managed to bid shares higher over the course of the trading day.
The big question for traders on Monday is whether or not the extremely oversold conditions – coupled with the End of the Month effect – are enough to bring buyers and bargain hunters off the sidelines and back into the stock market.
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Here are 7 Stocks You Need to Know for Monday
What’s up on a down day? Shares of ^EXPE^ soared by more than 9% on the final trading day of the week. The stock rallied from a two-day pullback above the 200-day moving average, including a dip into oversold territory.
Also up on the day were shares of ^PCLN^, which gained nearly 3%.
Shares of ^CRM^ continue to pullback above the 200-day moving average. Not yet in oversold territory, the stock has closed lower for three out of the past five sessions and was down nearly 1% on Friday.
Pulling back by three out of the past four trading days on Friday were shares of ^NFLX^. Any significant selling on Monday will likely take the stock into oversold territory above the 200-day.
^CAT^ has now closed in oversold territory above the 200-day for three consecutive sessions. CAT traded below its 200-day on an intraday basis on Friday.
Traders are in no hurry to take profits in shares of ^GMCR^. The stock was up more than 1% ahead of trading on Monday after rallying to new, year-to-date highs on Thursday.
And traders are in no hurry to buy when it comes to ^S^. Sellers sent the stock lower by more than 2% on Friday, the following through to the downside after Thursday’s steep plunge below the 200-day moving average.
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David Penn is Editor in Chief of TradingMarkets.com