Market Overview

Four Stocks Far Below Their 50 Day Moving Average

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Four Stocks Far Below Their 50 Day Moving Average

The S&P 500 is well above its 50 day moving average. Tuesday, it closed at 1771.95 leaving its 50 day at 1691.86 and relative strength index at more than 70 indicating overbought conditions.

The S&P might be continuing its epic move higher but that doesn’t mean that all of the well-known stocks are doing the same. We compiled a list of a few higher-volume stocks that are at least 10 percent below their moving average.

Are these value plays or are they broken? We’ll let you answer those questions through your research.

Symantec Corporation (NASDAQ: SYMC)

A recent victim of a bad earnings release, Symantec fell 18 percent last week after CEO Steve Bennet said he was “disappointed” with the recent quarter. Technically, the stock found support at its June lows and has recovered about six percent.

Green Mountain Coffee Roasters (NASDAQ: GMCR)

Earnings can sometimes create compelling buy points for otherwise good company but Green Mountain doesn’t have that excuse. It’s down nearly 29 percent from its highs and although it seems to have found at least a short term base, it could have further to fall. It formed a similar looking base at the beginning of October only to plunge even more. Analyst downgrades have caused investors to sell en masse.

Related: Is it Time for This Bull To Take a Break?

Groupon (NASDAQ: GRPN)

Sure, technicians will say that this stock is technically damaged but it’s had an impressive run this year so a sell off that brings the multiple back to something less parabolic may not be so terrible.

The stock is down 26 percent from its high of $12.76 and there’s no sign that the selloff is over. It’s currently sitting at a well-defined support level but if it continues lower, there’s another seven percent of downside until the next strong are of support.

Nuance Communications (NASDAQ: NUAN)

Carl Icahn has a lot to brag about with his great calls in companies like Netflix (NASDAQ: NFLX) but so far, Nuance Communications isn’t turning out the way he had hoped. After forming a trading range for months, the stock is now in a freefall. It’s down nearly 20 percent from its highs in early September. Technically, it formed a double top pattern that sent it plunging.

With an RSI of 15, the stock is severely oversold indicating that a short-term oversold bounce may be in its future but this is not a value investor’s chart. Volume is still high meaning that the smart money may still have shares to dump.

Disclosure: At the time of this writing, Tim Parker had no position in any of the stocks mentioned.

 

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