Most Overbought/Oversold Stocks 8 comments
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The following is a list of the most overbought and oversold stocks in the S&P 500 index.
Click here for an explanation of the indicator.
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A fundamental-analysis guy might answer: "as long as it wants to." (Ex: super-cat events do not care what your statistical model predicts for an individual security.)
However, since stock prices cannot go negative, a more correct answer might be: "as long as it wants to... or until it hits zero for enough days that zero finally falls within 1 standard deviation of the 50day moving average. At which point-- congratulations-- your security is no longer oversold."
Are the target prices listed here also based on 1 SD of the mean of the trading range, or are they based on further expert analysis of the fundamentals of the company, along with news, and sentiment about the stocks immediate future?
I find it rather ironic that sold many "overbrought"
energy stocks were listed when the whole world
knows we have had, and still have a real energy problem. Just an observation, form your own conclusions.