Even after moving sharply higher in October, four leading Dow stocks still have room to run, making for good position trade set-ups on any pullbacks in the coming sessions.

In early October, I discussed a monthly scan that I run which ranks the 30 stocks in the Dow Industrials by their proximity to the monthly Starc- bands. (See "The Most Oversold Dow Stocks.")

Starc band analysis is one way I determine whether a stock is in a high- or low-risk buy or sell zone. When a stock is close to its monthly Starc- band (oversold), then it is a low-risk buy and a high-risk sell.

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The gap between a stock's monthly closing price and the monthly Starc+ band gives a gauge of its upside potential. The above table updates the original list of the ten most oversold Dow stocks from the early-October article and how they performed throughout the month.

Of course, the performance was clearly enhanced by the exceptionally strong market in October, but it does not diminish the value of knowing where a stock is relative to its monthly Starc bands.

Caterpillar Inc. (CAT) was the most oversold stock at the end of September and then dropped below its monthly Starc- band in early October. It was the best performer for the month, up 28.5%, and the average gain for the ten stocks was just over 16%.

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This monthly list of the Dow stocks, listed in order of proximity to their monthly Starc+ bands, shows that the first stock on the list, McDonald's (MCD) is still 6% below its monthly Starc+ band.

Some of these stocks still look attractive for new purchases as long as the entry point is well chosen. The monthly charts can often alert of major trend changes, as it was the long-term charts that highlighted International Business Machines' (IBM) breakout in 2009.

So which stocks have the best monthly charts now?

NEXT: Important Dow Stocks to Watch

Tickers Mentioned: Tickers: MCD, IBM, INTC, KFT, CAT