Uncover Discounted Stocks Through Our Website's Screener: A Path to Profitable Trading
In the dynamic world of stock trading, identifying oversold stocks can provide valuable opportunities for potential rebound investments. Here's a step-by-step guide on how to find oversold stocks using a stock screener on specific websites, with a focus on S&P 500 stocks.
Finding Oversold Stocks
To find oversold stocks using a stock screener, follow these general steps:
- Select the appropriate screener tool on the website you are using. Many platforms offer prebuilt screeners or allow custom filter creation.
- Set the RSI (Relative Strength Index) filter to below 30 to identify oversold stocks. RSI < 30 is a common technical definition of oversold conditions.
- Use additional technical filters if desired, such as candlestick patterns (Hammer, Doji) and volume divergence, to confirm potential reversals from oversold status.
Refining the Search for S&P 500 Stocks
For a more targeted approach, follow these steps to refine your search specifically for S&P 500 stocks:
- Filter by the S&P 500 Index or Sector & Index Group = S&P 500 to limit to large-cap, blue-chip stocks.
- Restrict the Market Cap filter to Large or Mega Cap to focus on well-established companies within the S&P 500.
- Adjust the RSI threshold to below 45 if you want to capture both oversold stocks and those recovering from oversold conditions, broadening your candidate list slightly.
- Optionally, add liquidity filters such as minimum volume to ensure tradability, or price filters to exclude very low-priced stocks.
- Use visualization tools like mini charts or flip charts to quickly scan and analyze candidate oversold stocks.
- Save your screener and watchlist to track these stocks over time for potential rebound opportunities.
By using the RSI below 30 as your core oversold criterion, filtering for S&P 500 stocks and their market caps, and complementing with volume and price filters, you can refine your list of potential oversold stocks. Platforms like Barchart provide detailed options to execute this process effectively. Other websites, such as TradingView, also offer technical indicator-based screeners to identify potential oversold reversal setups.
Some of the names that might be found with these settings include Super Micro Computer (SMCI), Eli Lilly (LLY), Moderna (MRNA), Docusign (DOCU), and The Trade Desk (TTD).
Remember, the stock market is currently at all-time highs, and opportunities often come from buying quality stocks that have temporarily dipped into oversold territory. Sorting the list by Volume on the website's Stock Screener highlights the most actively traded oversold names.
This approach can help avoid chasing inflated prices, find better entry points for high-quality companies, and position ahead of a potential rebound. Beyond oversold stocks, the website offers screeners for ETFs, options, and other asset classes. The pre-made screener "RSI Oversold" can be selected on the website's Stock Screener.
It's important to note that a bounce could be coming when a stock is identified as oversold using RSI. However, the website's Insights did not have positions in any of the securities mentioned in the article on the date of publication.
[1] TradingView. (n.d.). Technical Analysis: RSI Oversold Levels. Retrieved from https://www.tradingview.com/support/solutions/33000557853-technical-analysis-rsi-oversold-levels/
[2] Barchart. (n.d.). How to Screen for Oversold Stocks. Retrieved from https://www.barchart.com/articles/how-to-screen-for-oversold-stocks
In the realm of finance and investing, technology-driven stock screeners can be utilized to find oversold stocks within the dynamic world of stock trading, such as S&P 500 stocks. By setting the RSI filter to below 30 and optionally incorporating technical filters like candlestick patterns and volume divergence, investors can identify potential rebound opportunities in oversold stocks.
