What are the Top Stocks with RSI Below 30?
Oliver KahnPossible article:
What are the Top Stocks with RSI Below 30?
If you are a technical trader looking foroversold stocksthat may be due for a rebound, one indicator to consider is the relative strength index (RSI). The RSI compares the magnitude of recent gains to recent losses in a stock's price, and ranges from 0 to 100, with readings below 30 indicating oversold conditions. While RSI alone cannot guarantee future performance, it can help identify potential buying opportunities or confirm other signals. So, what are some of the top stocks with RSI below 30 right now?
Bullish signals from RSI
One way to use RSI is to look forbullish signals, such asdivergencesor oversold bounces. A bullish divergence occurs when the RSI makes a higher low while the stock price makes a lower low, suggesting that the selling pressure may be waning. An oversold bounce occurs when the RSI reaches a low level and then starts to rise, indicating that the stock may be oversold in the short term and due for a bounce. However, these signals should be confirmed by othertechnical indicators, such as moving averages or trend lines.
Top stocks with RSI below 30
As of August 2021, some of the top stocks with RSI below 30 include:
- General Electric (GE): The industrial conglomerate has an RSI of 25.4 and a dividend yield of 0.3%. GE has been restructuring its business and improving its balance sheet, but still faces some challenges in its aviation and power segments. Some analysts see GE as undervalued and expect it to benefit from the global economic recovery and infrastructure spending.
- Devon Energy (DVN): The oil and gas producer has an RSI of 27.2 and a dividend yield of 1.5%. DVN has been focusing on its core assets in the Permian Basin and the Eagle Ford, while reducing debt and increasing free cash flow. Some analysts see DVN as well-positioned to benefit from higher oil prices and lower costs, but also face some regulatory and environmental risks.
- Delta Air Lines (DAL): The airline company has an RSI of 27.8 and a dividend yield of 0.9%. DAL has been recovering from the pandemic-induced slump in air travel, but still faces some uncertainty regarding the pace and extent of the recovery, as well as the impact of rising fuel costs and labor shortages. Some analysts see DAL as a potential turnaround story, with a strong brand and network.
- Moderna (MRNA): The biotechnology company has an RSI of 27.9 and no dividend yield. MRNA has been in the spotlight for its COVID-19 vaccine, which has been shown to be highly effective and profitable. However, MRNA also faces some challenges in scaling up production, expanding its pipeline, and competing with other vaccine makers and therapies. Some analysts see MRNA as a high-growth stock with potential risks and rewards.
Investing in RSI stocks
Before investing in any stock, it is important to do your own research and analysis, and to consider your own risk tolerance, investment goals, and portfolio diversification. RSI should be used as a supplement to other technical and fundamental indicators, and should not be relied upon as the sole basis for buying or selling stocks. It is also important to have a plan for managing your trades, such as setting stop-loss orders or taking profits at predetermined levels. Finally, it is recommended to consult with a licensed financial advisor or broker before making any investment decisions.
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