Is ZOLL Medical's Rally Over-Extended?

TradingMarkets subscribers have access to 16 quantitative stock indicators and another 17 quantitative market bias indicators. These indicators are derived from our proprietary database that includes millions of trades, and designed to give you a short-term trading edge.

There are 8 bullish and 8 bearish stock indicators, providing trading ideas for both rising and falling markets. When used in conjunction with the market bias indicators, traders can potentially achieve a substantial edge.

Each day, we provide free open access to one of these proprietary stock indicators. If you would like to access all 16 stock indicators, 17 market bias indicators, along with many other tools, click here for a free focus list that comes from our 2-Period RSI Above 98 list, which will be available until around 1 PM Tuesday afternoon.

These are stocks that have a 2-day RSI reading above 98 and are trading below their 200-day moving average. Our research shows that stocks trading below their 200-day moving average with a 2-period RSI reading above 98 have shown negative returns, on average, 1-day and 1-week later. Historically, these stocks have provided traders with a significant edge. To learn more about our research into stocks that have a 2-period RSI above 98, and how to use this information, click here.

Let's take a closer look a chart from the list above. Keep in mind that this is only one example from the indicator list, and that we are not recommending a trade in this particular stock. Traders should always create individual focus lists and radar screens based on their own information and trading strategies, instead of blindly following other people's recommendations.

ZOLL Medical (ZOLL | Quote | Chart | News | PowerRating)

ZOLL Medical (ZOLL) is trading below its 200-day moving average, in a confirmed downtrend. Simply stated, this stock has lost more over the past 200 days than it has gained. By technical definition, this is a weak, downtrending stock. The TradingMarkets mantra is to "buy weakness, and sell strength," and that is what we would be looking to do here. Our database of literally millions of trades proves that an edge to the short side exists when a weak stock rises to extended, strong levels. After rallying strongly enough to push the 2-Period RSI above 98, it's clear that this stock is trading at extended levels. As the price per share of ZOLL becomes more and more extended to the upside, the bearish edge continues to grow.

You can find the full list here. Also, Check out our latest quantified research articles here. If you don't already have a TradingMarkets subscription, click here for a free 7-day trial. Check back daily for 7 Trading Ideas for Today, and develop your own watchlist of stocks with historically-backed edges.

John Lee
Associate Editor
johnl@tradingmarkets.com

Reminder: We are in no way recommending the purchase or short sale of these stocks. This article is intended for education purposes only. Trading should be based on your own understanding of market conditions, price patterns and risk; our information is designed to contribute to your understanding.

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