Both of the oversold utilities stocks from my last report have
since rallied into strength.
) alike gained well over 1% just one day after appearing in our 5
Stocks for the Next 5 Days roster, and were up more than 3% three
days after we highlighted the stocks last week.
) was another oversold stock from last week that has since
performed impressively, adding more than 1% in three days.
This week, with stocks beginning to pullback from exceptionally
overbought territory, we will focus on some of the more overbought
stocks heading into the second half of the week.
Here are 5 Stocks for the Next 5 Days
Up six out of seven trading days heading into the Thursday
session, shares of
) have been among the more overbought in a very overbought
technology sector. And with strength on Thursday likely to push the
stock to new short term highs below the 200-day moving average,
traders should be on the lookout for potential profit-taking in the
The last time shares of AKAM were this overbought was during a
5-day rally in the first half of September. The stock fell for the
next four days in a row.
Also returning to overbought territory below the 200-day are
). Clearly the beneficiary of aggressive short-covering, NFLX has
closed higher for five out of the past seven trading days. And two
days of sideways to slightly lower trading heading into Thursday's
session has been the pause that refreshes as the stock is up more
than 3% midway through trading on Thursday.
Scheduled to announce earnings on Thursday,
(GOOG) has been on a tear for the past week, finishing higher for
eight consecutive trading days and moving toward a test of its
200-day moving average. Shares of GOOG have been trading below
their 200-day consistently since early August and have finished the
past four trading days in overbought territory.
Also overdue for a pullback - but on the other side of the
200-day moving average - are shares of
(AMZN). The stock, which was en route to new highs midway
through trading on Thursday, is up seven in a row and more than 12%
since its last oversold close on October 3.
Traders looking for stocks pulling back into oversold territory
above the 200-day moving average may want to keep an eye on shares
Green Mountain Coffee Roaster
(GMCR). Shares of GMCR are heading toward a second lower
close on Thursday and a return to oversold territory.
7 Stocks You Need to Know
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is Editor in Chief of TradingMarkets.com