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The bounce on Wednesday lifted a number of stocks out of oversold territory. But there remain a relatively large number of high PowerRatings stocks - stocks with PowerRatings of 8 or higher - that short term traders may be able to take advantage of before additional buying pushes these stocks out of the "consider buying" range.
Abercrombie and Fitch (ANF | Quote | Chart | News | PowerRating) (above) remains under some selling pressure - as the stock's PowerRating of 9 indicates. However, buyers did step in to bid the stock higher on Wednesday, which means any follow-through to the upside could result in a significantly higher stock - and a less attractive trade for PowerRatings traders.
Another 9-rated stock catering to retail consumer tastes is Lowe's Companies (LOW | Quote | Chart | News | PowerRating)
Lowe's also experienced buying on Wednesday that boosted the stock up from oversold extremes above the 200-day moving average. The stock is still more oversold than overbought, by a significant margin. But, like ANF above, any significant buying will likely push the stock out of the potentially-attractive, oversold range.
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A third stock that rallied modestly on Wednesday but still has a PowerRating of 9 and remains in oversold territory above the 200-day is P.F. Chang's China Bistro (PFCB | Quote | Chart | News | PowerRating) (below).
PFCB is perhaps the most oversold stock in today's report. For the past three days in a row, for example, PFCB has had a 2-period RSI of less than 2.2 and marked its fifth consecutive lower high on Wednesday.
All three stocks in today's report have Short Term PowerRatings of 9. Recall that stocks with PowerRatings of 9 have outperformed the average stock by a margin of more than 9 to 1 after five days. If you'd like to take your stock trading to the next level with quantified, professional caliber trading strategies, click here to start your free trial to our PowerRatings today!
David Penn is Editor in Chief at TradingMarkets.com.
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