The most oversold Dow stocks
A proven technical tool indicates widespread recent selling has driven many shares to levels where good buying opportunities may emerge soon.
- HD has additional weekly support from last fall in the $32 area.
- For the past three days, HD has closed at the daily Starc- band, increasing the odds of a bounce in the next few days.
- There is initial resistance at $35.50, line C, with the daily Starc+ band at $36.46. The former daily uptrend (line b) is at $36.98
- The weekly chart also has trend line support, line D, in the $10.36 area.
- BAC closed Monday on the daily Starc- bands. In February (point 2), the stock tested the Starc- band for three days before bouncing by almost a dollar.
- In April (point 3), BAC tested the Starc- band for two days, then moved sideways for two weeks before resuming its decline.
- The daily Starc+ band is at $11.92, with strong trend line resistance (line E) in the $12.35 area.
- The weekly Starc- band at $17.92 could easily be reached this week.
- There is converging chart support (lines A and B) in the $17.50 area.
- In February, GE closed below the Starc- band at point 1 before rebounding for three days.
- GE traded well below the Starc- band in March and then began a several-week rebound that almost took GE back to the Starc+ band.
- There is minor support for GE at $19 and then stronger support in the $19.50 area, line C. The daily Starc+ band is now at $19.85.
- JPM has converging chart support at $39.90-$40.24, lines D and E, which may hold JPM above the weekly Starc- band.
- JPM is now just barely above the daily Starc- band at $40.38.
- In March, JPM came close to the Starc- band (point 3) for several days before rebounding 10%. A similar test in April, point 4, preceded a two-week rebound.
- There is initial resistance for JPM at $42, with stronger resistance (line F) and the daily Starc+ band at $43.60.
Most financial stocks I treat as toxic but I still have STD and KFN.
Recently sold JPM, BAC, and GE.
Bought some DD and NZT today.
We shall see.
Copyright © 2014 Microsoft. All rights reserved.
Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.
The back-to-school season could be strong, and this year's holiday season could follow suit.
VIDEO ON MSN MONEY
Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.
Contributors include professional investors and journalists affiliated with MSN Money.
Follow us on Twitter @topstocksmsn.