The market can be forecasted by studying responses to different impacts, similar to predicting how a baseball will fly based on speed. Traders often base decisions on recent events, with volatility leading to more volatility. By screening beaten-down securities and using analysis, it’s possible to predict price clustering and potential outcomes.

Cadence Design Systems (CDNS) has been struggling since October, with a 40% Buy rating. Using price data, forward 10-week returns could range between $323 and $373, with clustering around $350. A 3-7-D signal indicates outcomes between $327 and $383, clustering at $362. The risk shape suggests a 360/365 bull call spread may be ideal.

Oscar Health (OSCR) is rated as a Hold, with forward 10-week returns ranging between $15.60 and $17.50, clustering at $16.60. A 3-7-D signal predicts outcomes between $13.80 and $21.90, clustering at $17. A 17/19 bull spread may be a suitable option due to risk geometry.

Chewy (CHWY) has a Strong Sell rating, but could be intriguing for speculators. Forward returns may range between $32.13 and $34.60, clustering at $33.80. A 3-7-D signal suggests outcomes between $28.75 and $46.80, clustering at $38.50. Traders may consider a 37.50/40.00 bull spread for potential gains.

Read more at Barchart: 3 Stocks Flashing High-Probability Trading Setups to Consider This Week