The Globe and Mail attempts to identify stocks with a downside risk of 10 per cent or more in its Friday edition. The Globe's guest columnists Ron Meisels and Monica Rizk write in the Number Cruncher column that they only considered companies in the S&P/TSX 60 Index. They looked at each stock's 40-week moving average (40wMA). They believe stocks trading above their rising 40wMA are the best candidates for investments. Those stocks are the ones that show a bullish behaviour. Mr. Meisels and Ms. Rizk note that when stocks rise significantly above this average (more than 10 per cent), investors often use this as an opportunity for taking profits, since this usually leads to a price correction toward the 40wMA. Mr. Meisels and Ms. Rizk focused on stocks that are trading above their rising 40wMAs and therefore have further upside potential, but are currently trading 10 per cent or more above this indicator. These are the ones most likely to have a pullback toward their respective 40wMA where they could provide an ideal point for accumulation. Stocks with greater downside risk are Canadian Tire, Magna International, Loblaw, National Bank of Canada, TransCanada and Tim Hortons.