Globe editors have posted this research report with permission of Capitalight Research. This should not be construed as an endorsement of the report’s recommendations. For more on The Globe’s disclaimers please read here. The following is excerpted from the report:
Numerous U.S. Technology stocks display a bullish technical picture, with some recently starting new uptrends while others began their rise earlier and are currently extremely overbought. Although an overbought condition may persist for an extended period of time, the longer it lasts, the more likely the stock is to have a correction. The latter may occur in either price or time; a correction in price would indicate a price-decline toward the 40-week Moving Average (40wMA) while a correction in time would entail a horizontal trading range, which would allow the Average time to catch up to the price. We provide a table at the end of the report of some of the most overbought stocks with the corresponding level of their respective 40wMAs and the percentage above the Average for each stock. A better entry level for these stocks would occur after a correction in price or time.
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Monica Rizk