The following stocks gapped down significantly at the open on March 23: MDC Holdings Inc, Randgold Resources Limited, Ryland Group Inc, Convergys Corporation, and Huaneng Power International Inc. These stocks may be down because of negative overnight news, overall market bearishness, or shorters pounding the stock down in hopes to cover. Oftentimes stocks will close the gap, meaning they will retrace to the last day's low. Thus, gap downs are often good buying opportunities.
Shares of MDC Holdings Inc (MDC) opened lower by -3.94% and are currently trading at $24.79. In the past year, the shares have traded as low as $14.45 and as high as $28.16. On average, 1045079 shares of MDC exchange hands on a given day and today's volume is recorded at 153879. The shares are currently trading above the 50-day moving average which indicates that the shares have been experiencing strong upward momentum as the 50 DMA is above the 200 DMA. The stock may come back down to test the 50-day moving average, so look for a move back to the $23.56 area where the stock will likely see buying pressure.
Shares of Randgold Resources Limited (GOLD) opened lower by -3.73% and are currently trading at $86.31. In the past year, the shares have traded as low as $72.92 and as high as $120.73. On average, 597990 shares of GOLD exchange hands on a given day and today's volume is recorded at 566647. The shares are currently trading below the 200-day moving average which indicates that the shares have been suffering from downward momentum lately. The stock may bounce higher to test the 200-day moving average, so look for a move up to the $102.73 area where the stock may encounter resistance.
Shares of Ryland Group Inc (RYL) opened lower by -3.65% and are currently trading at $19.04. In the past year, the shares have traded as low as $9.11 and as high as $21.15. On average, 1542970 shares of RYL exchange hands on a given day and today's volume is recorded at 313361. The shares are currently trading above the 50-day moving average which indicates that the shares have been experiencing strong upward momentum as the 50 DMA is above the 200 DMA. The stock may come back down to test the 50-day moving average, so look for a move back to the $19.04 area where the stock will likely see buying pressure.
Shares of Convergys Corporation (CVG) opened lower by -3.64% and are currently trading at $13.67. In the past year, the shares have traded as low as $8.49 and as high as $14.66. On average, 643180 shares of CVG exchange hands on a given day and today's volume is recorded at 231202. The shares are currently trading above the 50-day moving average which indicates that the shares have been experiencing strong upward momentum as the 50 DMA is above the 200 DMA. The stock may come back down to test the 50-day moving average, so look for a move back to the $12.98 area where the stock will likely see buying pressure.
Shares of Huaneng Power International Inc (HNP) opened lower by -3.41% and are currently trading at $21.97. In the past year, the shares have traded as low as $15.45 and as high as $26.31. On average, 135790 shares of HNP exchange hands on a given day and today's volume is recorded at 22241. The shares are currently trading below the 50-day moving average but above the 200-day moving average. The stock may be range bound between these two levels where the 50-day moving average of $24.47 represents resistance and the 200-day moving average of $20.52 would be an area of support.
