The following stocks gapped down significantly at the open on March 26: Lexicon Pharmaceuticals, Inc, Eaton Vance Floating-Rate Income Trust, AU Optronics Corp, Responsys, Inc, and iShares FTSE NAREIT Mort Plus Cp Idx. 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 Lexicon Pharmaceuticals, Inc (LXRX) opened lower by -2.14% and are currently trading at $1.9. In the past year, the shares have traded as low as $0.81 and as high as $2.01. On average, 899820 shares of LXRX exchange hands on a given day and today's volume is recorded at 67180. 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 $1.66 area where the stock will likely see buying pressure.
Shares of Eaton Vance Floating-Rate Income Trust (EFT) opened lower by -2.05% and are currently trading at $16.61. In the past year, the shares have traded as low as $12.89 and as high as $17.06. On average, 231820 shares of EFT exchange hands on a given day and today's volume is recorded at 34254. 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 $15.36 area where the stock will likely see buying pressure.
Shares of AU Optronics Corp (AUO) opened lower by -2.04% and are currently trading at $4.79. In the past year, the shares have traded as low as $3.75 and as high as $8.84. On average, 1407980 shares of AUO exchange hands on a given day and today's volume is recorded at 91093. 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 $5.01 area where the stock may encounter resistance.
Shares of Responsys, Inc (MKTG) opened lower by -2.03% and are currently trading at $12.28. In the past year, the shares have traded as low as $7.30 and as high as $18.19. On average, 416320 shares of MKTG exchange hands on a given day and today's volume is recorded at 57586. The shares are currently trading above the 200-day moving average which indicates that the shares have been subject to upward momentum. The 200 DMA is above the 50 DMA which indicates that the stock has likely taken a dip in the shorter term. The stock may eventually drop to test the 200-day moving average where buyers may be lurking near the $11.95 area.
Shares of iShares FTSE NAREIT Mort Plus Cp Idx (REM) opened lower by -1.94% and are currently trading at $13.58. In the past year, the shares have traded as low as $10.99 and as high as $14.33. On average, 235210 shares of REM exchange hands on a given day and today's volume is recorded at 159782. 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 $13.69 represents resistance and the 200-day moving average of $13.08 would be an area of support.
