Shares of Kraft Foods Inc. (KFT) ended last week pulling back for a third day in a row on Friday. The sell-off in Kraft drags the stock back into oversold territory for the first time since the beginning of the month.
Perhaps ironically, KFT’s last stint in oversold territory also came as a result of a three-day pullback – one that was met by strong, short-term buying.
How strong? After closing lower for three days in a row at the end of October and into November, Kraft� rallied by more than 2% over the next two days en route to new 52-week highs.
Previous short term, multi-day sell-offs in early October and early September were also excellent opportunities for traders to make quick work of short term oversold extremes.
Three down days in October that took KFT into bear market territory briefly were followed by a rally during which shares of KFT closed higher for eight days in a row, gaining more than 7%. A four-day drop in mid-September was met by a three-day buying spree that sent KFT up by over 4%.
Traders looking for other stocks from the consumer staples sector that have begun to pullback include H.J. Heinz (HNZ), which plunged by more than 3% to finish both oversold and just inside bear market territory. Also beginning to see some profit-taking are shares of CVS Caremark Corp. (CVS). CVS pulled back by less than 1% on Friday, but is already at technically oversold levels.
Related Articles:10 Good Stocks To Own For May 2015
Best Stocks To Buy In September 2012
Tags: 10 Good Stocks To Own ,10 Good Stocks To Own For May 2015 ,ADS ,CREG ,EOC ,FLL ,GILD ,MAT ,NEP ,NTES ,Best China Stocks 2012
No comments:
Post a Comment