Beaten Down Fundamentally Sound Companies Changing Trend
Market might not be favorable for swing trading. However, it is presenting opportunities in fundamentally strong companies that have been beaten down but are now starting to reverse trend.
One of the readymade filters that we have in our Pro-Setups Dashboard is to scan for companies that are beaten down, but are now on the verge of changing trend. The core idea behind this filter is to give us a headstart in identifying solid companies at the cusp of a turnaround. Entering such stocks early-when the broader market is still skeptical can offer attractive risk-reward opportunities.
Identified using the Red Trend bars on weekly timeframe that can be seen on the top of your charts on TradingView using our Pro-Setups indicator. The same can be scanned on our Dashboard as well.
Identified using the proprietary Fundamental Score. A score > 65 or 70 can be said to give us fundamentally sound companies.
Identified using the Yellow and Green Trend bars on daily timeframe that can be seen on TradingView charts. Add Rising 50EMA filter to it.
The filter first scans for companies whose stock prices have experienced significant declines. The next step is is to ensure that these companies still possess strong underlying fundamentals. In the third step, we look for companies that are starting to rise again and are poised for a potential upward move.
While these stocks may not be immediate buy candidates, they definitely deserve a place on your watchlist for closer monitoring. The filter does not works on recently listed companies due to their limited stock price history.
Let’s look at couple of examples, which are showing up in our Dashboard as on May 10, 2025. For the full list, subscribers to Pro-Setups can click here.
