Relative Strength Index (RSI) falls below 30, which is considered the oversold zone. An RSI reading below 30 indicates that the stock has been under heavy selling pressure and may be undervalued in the short term. This often signals exhaustion of sellers and a potential reversal or relief rally. As highlighted, once RSI dipped into the oversold region, prices soon bounced back, confirming that oversold conditions can attract buyers and lead to an upward move. Traders use this as a signal to look for possible entry points when the market shows signs of recovery.