The Globe and Mail attempts to identify stocks that have the potential for a recovery rally of 10 per cent or more in its Friday, Oct. 17, edition. The Globe's guest columnist Monica Rizk and Ron Meisels write in the Number Cruncher column that they looked a stock's 40-week moving average. This indicator was chosen because stocks tend to stay relatively close to their 40-week moving average. When stocks rise far above this average, investors often use this as an opportunity for taking profits, since this usually leads to a price correction toward the 40-week moving average. Conversely, when stocks decline significantly below this average, a recovery rally could follow toward the average. Investors usually wait for the rally for this opportunity to sell, while the more short-term oriented may anticipate the rally to take advantage of the upside potential for a quick trading opportunity. The guests columnists focused on stocks trading above $5 but below their falling 40-week moving average by 10 per cent or more. Oversold stocks are ARC Resources, Barrick Gold, Canadian Natural Resources, Canadian Oil Sands, Cenovus Energy, Husky Energy and Crescent Point Energy.