Early in trading on Friday, the stock is only becoming more oversold, gapping down at the open and down more than 2% mere minutes into the trading day.
Its two-period RSI plunging from more than 70 to less than 20 in three days, Cougar Biotechnology has become one of the more oversold stocks in a very short period of time, potentially reflecting panic selling.
Oversold can become more oversold.
Now look at Google, which was significantly more oversold.
Oversold can always get more oversold, but there is potential for Friday's action to be climactic, especially combined with pullback to the support levels cited above.
Stocks moved modestly higher on Thursday, and move higher they did, creating more overbought stocks below the 200-day moving average and more oversold inverse ETFs above.
Given the way the market closed Monday, rallying from its intraday lows, it looks like there are even more oversold opportunities for traders.
"Every 48 hours more stocks are oversold than overbought," said Bill Schneider, head of equity block trading at Warburg Dillon Read.
Here are five stocks that not only have high Short Term PowerRatings but also have the sort of low, two-period RSIs that further mark the stocks as oversold and are more likely than the average stock to outperform in the near term.
