“Buy low and sell high” is a simple investing adage that not only makes basic sense, but is backed by historical data.
But this philosophy is not just for fundamental investors. Technical analysts use statistics to find “overbought” and “oversold” stocks based on their trading history.
Using Kensho, a quantitative analytics tool used by hedge funds, we ran a screen to search for the most oversold and overbought stocks in the S&P 500. We looked for the stocks that historically have had the biggest future five-day returns after reaching this oversold state. Conversely, the overbought names have the lowest five-day returns.
Here are the stocks that are oversold that may be due for a pop this week.
[“source -pcworld”]
