Oversold and due for a rebound stocks

Screening Filters

1. Market Cap: minimum $200M

   • Purpose: Exclude very small, highly speculative companies.
   • Rationale: For an “oversold and due for a rebound” screen, this helps focus on stocks that are large enough to have meaningful liquidity and market participation, which can make rebounds more reliable than in thinly traded microcaps.

2. Volume: minimum 300,000 shares

   • Purpose: Ensure the stock is actively traded.
   • Rationale: A rebound setup is more actionable when there is enough volume for price moves to be supported by real trading interest. It also reduces the chance of getting stuck in illiquid names with exaggerated moves.

3. RSI Category: Oversold

   • Purpose: Find stocks that have recently been sold off heavily.
   • Rationale: This is the core filter for the user’s request. Oversold RSI suggests the stock may be stretched to the downside and potentially positioned for a technical bounce or mean reversion.

4. Moving Average Relationship: Price Below MA20, Price Cross Above MA5

   • Purpose: Identify stocks that are still weak on the short-term trend but may be starting to turn.
   • Rationale:
     • PriceBelowMA20 confirms the stock is still under short-term pressure, which often aligns with an oversold condition.
     • PriceCrossAboveMA5 signals an early short-term reversal attempt, suggesting momentum may be shifting upward.
   • Together, these help capture stocks that are not just oversold, but may be beginning a rebound.

5. MACD: Bullish

   • Purpose: Confirm improving momentum.
   • Rationale: A bullish MACD indicates that downside momentum is weakening and momentum may be turning positive. This supports the idea that an oversold stock is starting to recover rather than simply remaining weak.

Why Results Match:

• The screen starts with oversold stocks, which directly matches the user’s request.
• The moving average and MACD filters add confirmation that the stock may be transitioning from weakness to rebound, rather than just being oversold and still falling.
• The market cap and volume filters improve quality by focusing on more liquid, tradable stocks where rebounds are more meaningful and less prone to noise.
• Overall, the screen is designed to find stocks that have been sold off, may be technically stretched to the downside, and show early signs of a bounce or trend reversal.