Relative Strength Index: The Technical Indicator That Can Save You From Losing Trades And Help You Find Winners
Portfolio Pulse from David Pinsen
The article discusses the use of the Relative Strength Index (RSI) as a technical indicator in stock trading. It highlights how RSI helped avoid a potentially losing trade on Stitch Fix (NASDAQ:SFIX) and identified an opportunity in Big Lots (NYSE:BIG). The RSI indicated that SFIX was oversold, despite other indicators suggesting a bearish outlook. SFIX's stock spiked after mixed earnings, but ended the week flat. BIG, on the other hand, showed a short-lived bounce after poor earnings, presenting a trading opportunity.
September 26, 2023 | 4:06 pm
News sentiment analysis
Sort by:
Ascending
NEGATIVE IMPACT
BIG showed a short-lived bounce after poor earnings, presenting a trading opportunity.
BIG's poor earnings led to a short-lived bounce in the stock price, indicating a potential trading opportunity. However, the bounce was short-lived, suggesting a negative short-term impact.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 70
NEUTRAL IMPACT
Despite other indicators suggesting a bearish outlook, the RSI indicated that SFIX was oversold. The stock spiked after mixed earnings, but ended the week flat.
The RSI, a technical measure of whether a stock is overbought or oversold, suggested that SFIX was oversold. This, combined with mixed earnings, led to a spike in the stock price, but it ended the week flat, indicating a neutral short-term impact.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80