Opportunity in Oversold Assets
The financial market is buzzing with potential as oversold stocks offer a golden ticket to invest in undervalued companies.
One indicator catching the eye of savvy traders is the Relative Strength Index (RSI), which compares a stock’s strength on days when prices rise to its strength on days when prices fall, giving insights into a stock’s potential short-term performance. When a stock’s RSI is below 30, it is typically considered oversold.
Let’s take a closer look at two major oversold players in the financial sector, each with an RSI near or below 30.
Ellington Financial Inc. EFC
- Shareholders of Arlington Asset Investment approved a merger with Ellington Financial Inc. on December 12. The company’s stock experienced a 3% decline over the past month and hit a 52-week low of $10.82.
- RSI Value: 29.54
- EFC Price Action: Ellington Financial’s shares rose by 0.2% to close at $12.72 on Thursday.
Hywin Holdings Ltd. HYW
- Hywin Holdings announced a strategic partnership agreement with Tencent Cloud for digital transformation on December 1. The company’s stock plummeted by 77% over the past month, reaching a 52-week low of $1.2620.
- RSI Value: 6.13
- HYW Price Action: Hywin Holdings’ shares declined by 4.3% to close at $1.3401 on Thursday.
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