The following stocks gapped down significantly at the open on March 23: KB Home, Layne Christensen Co, Steelcase Inc, Wet Seal Inc, and KIT digital, 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 KB Home (KBH) opened lower by -13.97% and are currently trading at $9.94. In the past year, the shares have traded as low as $4.94 and as high as $13.22. On average, 6439840 shares of KBH exchange hands on a given day and today's volume is recorded at 7492492. 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 $10.88 represents resistance and the 200-day moving average of $8.35 would be an area of support.
Shares of Layne Christensen Co (LAYN) opened lower by -9.59% and are currently trading at $20.05. In the past year, the shares have traded as low as $20.54 and as high as $38.00. On average, 116230 shares of LAYN exchange hands on a given day and today's volume is recorded at 142001. The shares are currently trading below the 50-day and 200-day moving averages which indicates that the shares have been experiencing downward momentum. The stock may bounce back to test the 200-day moving average. Thus, you may want to pay close attention for a move up to the $24.43 area but be careful because the stock may face selling pressure at this level.
Shares of Steelcase Inc (SCS) opened lower by -7.97% and are currently trading at $8.65. In the past year, the shares have traded as low as $5.30 and as high as $11.84. On average, 517690 shares of SCS exchange hands on a given day and today's volume is recorded at 291741. 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 $8.92 represents resistance and the 200-day moving average of $8.28 would be an area of support.
Shares of Wet Seal Inc (WTSLA) opened lower by -7.89% and are currently trading at $3.3. In the past year, the shares have traded as low as $3.03 and as high as $5.23. On average, 1020230 shares of WTSLA exchange hands on a given day and today's volume is recorded at 318413. The shares are currently trading below the 50-day and 200-day moving averages which indicates that the shares have been experiencing downward momentum. The stock may bounce back to test the 200-day moving average. Thus, you may want to pay close attention for a move up to the $3.43 area but be careful because the stock may face selling pressure at this level.
Shares of KIT digital, Inc (KITD) opened lower by -7.61% and are currently trading at $6.35. In the past year, the shares have traded as low as $7.38 and as high as $12.73. On average, 863760 shares of KITD exchange hands on a given day and today's volume is recorded at 1573880. 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 $10.10 area where the stock may encounter resistance.
