RSI

When the RSI (Relative Strength Index) falls below 30, it indicates that the stock is in an oversold zone, meaning the selling pressure has been very strong and the price may have dropped too much too quickly. This often signals that the stock could be undervalued in the short term and may be due for a technical bounce or reversal as buyers start stepping in. However, it’s not a guaranteed buy signal—sometimes a stock can remain oversold for an extended period in a strong downtrend—so traders usually confirm it with price action, support zones, or bullish reversal patterns before taking positions.