Most Overbought/Oversold Stocks, Relative To Own Ranges

by: TickerSense

Regular readers know that we often post lists of the most overbought or oversold stocks in the S&P 500. Recently we have added another dimension to this approach, and screened for those stocks that are the most overbought and oversold relative to their individual trading ranges, instead of a fixed number. Certain stocks are more volatile than others, so when EBAY trades 5% below its 50-day moving average, it may not be as ‘rare’ an event than when WWY trades at the same value.

The tables below list the ten stocks that as of yesterday’s close were closest to being the most oversold (or overbought) than they have been in the last 200 trading days. So CPB, which tops the list of most oversold stocks, isn’t necessarily the most oversold stock in the S&P 500, but it is the most oversold it has been in the last 200 days. COL, on the opposite end of the spectrum, is the most overbought it has been in 200 days:

The purpose of this exercise is to provide a starting point for investors. The most overbought stocks are not necessarily sells right now, but based on their current levels the risk/reward equation is definitely skewed towards risk. In the price history charts below of WWY and FSH, we have highlighted in red those points where each stock was at least as oversold (or overbought) as it currently is.