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Technology stocks were among those moving dramatically higher on Wednesday. In addition to gains in stocks like Yahoo! (YHOO | Quote | Chart | News | PowerRating) and Oracle Corporation (ORCL | Quote | Chart | News | PowerRating), technology ETFs like the Technology Select Sector SPDRS ETF (XLK | Quote | Chart | News | PowerRating) were higher, reflecting broad-based buying in the sector.
There were a few stocks in the technology space that did not participate in Wednesday’s move higher. As such, many of them may offer high probability trading opportunities for short term traders on the lookout for stocks in extremely oversold territory above the 200-day moving average.
KLA-Tencor (KLAC | Quote | Chart | News | PowerRating) has been under significant selling pressure for the past several days as the stock has fallen from a closing high of more than 29 to a recent closing low of less than 24. With a PowerRating of 8, the stock has bounced from its oversold lows from Tuesday, but still remains a potentially attractive opportunity, particularly on intraday weakness.
Down for four trading days in a row, shares of JDS Uniphase (JDSU | Quote | Chart | News | PowerRating) is another oversold technology stock that may come under increased attention from short term traders. Buyers have stepped in on the past two days to bid shares off their intraday lows. As with fellow 8-rated stock, KLA-Tencor, JSDU may be all the more attractive should intraday weakness help bring the stock below even its most recent levels.
On the consumer end of the technology spectrum, shares of Best Buy Company (BBY | Quote | Chart | News | PowerRating) have also earned PowerRatings of 8 as of Wednesday’s close. The home electronics retailer is down three days in a row above its 200-day moving average – down four out of the past five – and has had a 2-period RSI of less than 7 for the past two days.
Recall that stocks with PowerRatings of 8 have outperformed the average stock by a margin of more than 6 to 1 after five days, according to our research.
For more information and tips on trading high PowerRatings stocks, read our primer by Larry Connors, How to Find the Best Stocks to Trade Every Day.
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