Finding stocks that are heavily oversold can provide an excellent opportunity to invest in undervalued companies.
The Relative Strength Index (RSI) is a crucial momentum indicator used to gauge a stock’s strength in relation to its price movements. When the RSI falls below 30, it signifies that an asset is oversold, indicating a potential buying opportunity.
Here are the latest major oversold players in the financial sector, with RSI values near or below 30.
Potential Pick: Ellington Financial Inc. EFC
- On December 12, Arlington Asset Investment approved a merger with Ellington Financial Inc. The company’s stock experienced a decline of approximately 3% over the past month and reached a 52-week low of $10.82.
- RSI Value: 29.54
- EFC Price Action: Shares of Ellington Financial gained 0.2% to close at $12.72 on Thursday.
Potential Pick: Hywin Holdings Ltd. HYW
- On December 1, Hywin Holdings announced a strategic partnership agreement with Tencent Cloud for digital transformation. The company’s stock plummeted by approximately 77% over the past month, hitting a 52-week low of $1.2620.
- RSI Value: 6.13
- HYW Price Action: Shares of Hywin Holdings fell 4.3% to close at $1.3401 on Thursday.
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