The 5 Most Oversold Nasdaq 100 Stocks For November 2019

Each month, I scan for stocks in the major averages that have positive or negative momentum, as well as for those that are quite overbought or oversold. This is accomplished by looking at where stocks closed the month in relation to their starc bands. This analysis, like my regular weekly scan of stocks, provides a list of stocks for further analysis and possible recommendation.

The closeness to the starc bands is also a measure of the risk. When a stock or ETF closes near its upper starc band (starc+), it is considered to be a higher-risk buy and is in overbought territory. Conversely, a close near the lower starc band (starc-) indicates that a stock is in a high-risk sell area (also a low-risk buy area), and is in oversold territory.

To be clear, if a stock turns up on my most overbought list, that does not mean it can’t go even higher. The same goes for my most oversold list: those stocks that have declined closest to their starc- bands can still go even lower. But an oversold stock with positive technical indicators is unlikely to decline significantly further, and a technical approach should allow you to both set appropriate stops and predict upside price targets.



The most oversold Nasdaq 100 stock after the October close was Verisk Analytics (VRSK). VRSK is a data analytics and risk assessment company that was down 8.5% in October. It closed just 10.9% above its monthly starc- band.



VRSK closed in October below the three-month low of $146.30, which means that anyone who bought the stock since July is holding a loser. The rising 20-month Exponential Moving Average (EMA) is at $129.61, which is just above the starc- band. The monthly relative performance (RS) has turned sharply lower but is still above its Weighted Moving Average (WMA). The On Balance Volume (OBV) completed its bottom in September 2017, when it moved above its resistance (line b). It is declining but still positive.

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If you are interested in following my style of analysis I hope you will consider the Viper ETF or  more

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