The RSI is falling ("oversold"???) because price is falling. What do you expect?
In case folks hadn't noticed, price is > 50% off its January high. This is a massive haircut for holders.
Look at price action itself, (aka "the market"), not lagging, mechanical, derivative indicators...or, at best, indicators as after the event confirmation of the the Price Action (PA). And indeed RSI confirms the falling trend since January - successively lower peaks ...and lower troughs (the very definition of a downtrend - since Jan., anyway). Of course RSI is falling (and there is no divergence, anyway)
What do you expect from a stock that was 2c in July? Exponential up, then either exponential down, or in this case, death by a thousand cuts, with people endlessly picking bottoms, and failing at it. Once in a blue moon they'll be right and reap the rewards, but generally a thankless - and losing - enterprise.
People like mechanical indicators because they don't have to think.
"Oh....it's above / below that signal level...It's a Buy / Sell"
If only it were that easy.
Unfortunately it's not, else we'd all be rich.
If you see evidence of a change of trend, let us know. Evidence....like a higher trough, ideally, accompanied by a higher peak...the first sign, the infancy of a change in direction (or directional bias).
This week it broke the 12 Dec. swing low of 19.25.
The next swing hi (new Support) of 22 Aug is 17.5 is the next key level....that has to hold.
Interestingly, today's low was 17, now Bidding 17.5, Asking 18.
Will it? I don't know. No-one does.
Expand
