Trading By the Numbers: Stocks On Sale in Health Care, Software, Retail
Amid the frenzied buying and short-covering on Thursday, there were a few stocks that continued on their short-term sell-offs. And if traders and active investors remain in buying mood over the next day or two, these oversold stocks may be the sort of opportunities that those who have been largely short or in cash find it hard to resist.
Merge Technologies (MRGE) is an example of a stock that has experienced typical profit-taking after rallying toward its highest levels of the year (set in mid-September). The profit-taking has sent the stock lower for three days in a row, down more than 3% on Thursday alone.
Thursday’s close, by the way, marked Merge Technologies first close in technically oversold territory since October 3. MRGE soared by more than 11% the next day alone and was higher by more than 17% six days later.
Also pulling back for a third day in a row ahead of trading on Friday are shares of Athena Health (ATHN). Like MRGE, shares of ATHN are back to oversold territory for the first time since the beginning of the month. Although finishing off its lowest levels on Thursday, the stock nevertheless lost more than 1% and closed at its lowest level since August.
Among the sharper pullbacks on Thursday was the retreat of more than 5% in shares of retailer Hot Topic (HOTT). Thursday marked the stock’s third lower close in a row, and the stock’s first finish in technically oversold territory in a month. The pullback in HOTT shares, like the Merge Technologies pullback, comes after the stock rallied to near its highest levels of the year.
The stocks in today’s report were drawn from the data and research available through PowerRatings. To find out more, click here.
David Penn is Editor in Chief of TradingMarkets.com