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.
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Only one of these troubled companies is worth owning, says Jim Cramer.
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