All of the three stocks in today's report likely will require
additional selling before they are trading in technically oversold
territory where buyers, historically and statistically speaking,
have tended to be lured back into the market. With stocks starting
off the week on a positive note - and extending a strong run from
last week - profit-taking in the first few days of the week could
create opportunities in stocks such as these.
Dunkin' Brands Group Inc.
) had closed lower for three days in a row before gapping lower and
selling off by more than 1% on Monday. The stock had rallied to
new, 52-week highs last week, and the profit-taking in DNKN has
taken the stock to the edge of technically oversold territory above
the 200-day moving average.
The last time Dunkin' Brands traded oversold, back in the first
full week of March, DNKN rallied from new, two-week lows to gain
well over 10% in five days. In fact, this is the rally that traders
and more active investors are currently taking profits from,
sending the stock lower by more than 2% over the past four
Pulling back by just over 2%, shares of
) have retreated from what appeared to be a
from a short-term trading range last week.
ESRX has closed lower for two out of the past three days, and
have a positive, short-term edge of just over half a percent. Any
signifcant selling on Tuesday likely will take the stock down to
oversold levels, which the stock has avoided for more than a month
in largely rangebound trading. ESRX has been trading in bull market
territory since the middle of January and has a
in the short-term of more than half a percent.
With all this talk of
) and its new dividend and share buyback program, could the bettter
short-term opportunity be in
Shares of Microsoft slid by more than one and a quarter percent
on Monday, finishing lower for a second day in a row as traders
trim gains from the stock's rally to new, 52-week highs late last
week. Having traded outside of technically oversold territory for
more than a month, MSFT could reach oversold levels with just a day
or two of additional profit-taking. Note that Microsoft has not
finished lower for three days in a row since climbing back into
bull market territory in mid-December.
Microsoft has a modest edge of just under a quarter of a
percent. The stock picked up a one-point
to 6 out of 10, a neutral trading, earned early in Monday's
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