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Posted On: 01/24/2017 6:56:16 AM
Post# of 75364
Again, the RSI indicator is only but one piece of the puzzle to determining the value of the company and whether or not a company is over bought or sold.
For example, a company can have a RSI of 30 (Over sold). Would that mean it's a good buy because it's so low? Not exactly.
If the company's business structure/operations is failing, then the share price is going to reflect that too which is going to represent the RSI of dropping down. Doesn't necessarily mean a good buy, because the RSI doesn't value the state of actual business.
I've personally seen RSI's of 130 ($NTEK). Keep that in mind.
For example, a company can have a RSI of 30 (Over sold). Would that mean it's a good buy because it's so low? Not exactly.
If the company's business structure/operations is failing, then the share price is going to reflect that too which is going to represent the RSI of dropping down. Doesn't necessarily mean a good buy, because the RSI doesn't value the state of actual business.
I've personally seen RSI's of 130 ($NTEK). Keep that in mind.
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