Pinning down stocks with a low RSI can be difficult. RSI is the type of metric that changes daily.
RSI, which stands for Relative Strength Indicator, is a handy metric for determining when a stock has become oversold and thus in a position for a potential rebound.
Simply put, when a company’s RSI is above 70, it indicates the stock is overbought. When it’s below 30, the stock is likely oversold.
Often time, when a stock’s price falls, its because of negative news or general market turmoil pulling the stock lower. But when a stock falls without any clearly discernable reason, it often means the stock is oversold and primed for an increase. That makes the RSI an invaluable tool for investors looking to make some money.
That said, it sure makes it difficult to write an article about stocks with an RSI below 30.
Take CISCO (CSCO) for example, as early as last month, shares of the multinational conglomerate were trending in oversold territory, dipping to 29.9. That, combined with the company’s strong fundamentals, indicated a great buying opportunity. Now the stock’s RSI is sitting at 67.15 and a share price around $40.00.
So, how does one recognize when a stock is oversold? An RSI stock screener can be helpful in this case. RSI screeners or RSI scanners – whichever term you prefer – is basically what you’d expect. They scan the market looking for stocks that fall below the coveted 30-mark. If you’re looking for stocks under 30, a free rsi stock screener is a good place to start.
Here are a handful of stocks with an RSI under 30 as of this writing.
1. GoldMining Inc (GLDG)
GoldMining Inc is involved in the acquisition, exploration, and development of mineral properties throughout the Americas.
The company has operations in Canada, Brazil, the United States, Paraguay, Colombia, and Peru; with nearly a dozen projects throughout.
The company was founded by Amir Adnani in 2009 and is headquartered in Vancouver, Canada. The company was only recently listed on the NYSE. GLDG also recently appointed a new Executive VP.
All of that, when coupled with a low RSI, could indicate an opportunity for investors. Not to mention, with the current global economic tumult, gold remains an important resource.
2. Vedanta Limited (VEDL)
Vedenta Limited is an Indian mining company that operates in iron ore, gold, and aluminum. The company has mines in Goa, Karnataka, Rajasthan, and Odisha. Vedanta is owned by billionaire Anil Agarwal.
A number of hedge funds showed interest in the firm earlier this year, which may have been a positive thing. But the company ran headfirst into controversy as recently as October.
Vedenta attempted to take the company private and delist from exchanges. The company required 1.34 billion shares to successfully carry out the measure but was thwarted by shareholders. Now, the company is set to repay billions of dollars.
All of this news has sent share prices lower, but VEDL’s RSI indicates the stock is in oversold territory and could be prime for an uptick.
3. Kronos Bio (KRON)
This clinical-stage biopharmaceutical company has only been publicly listed since October 8, 2020. The company discovers and develops novel cancer therapeutics.
When the company’s stock went public, the price was marked at $19 per share. It’s currently trading around $30 per share. Still, there could be room to grow given that it currently has an RSI below 30.
The money raised from the IPO is earmarked to be used for acute myeloid leukemia (AML) and solid tumor treatment. Analysts have been intrigued by early trial results of the company’s drugs, as well as its collaborative relationship with Gilead Sciences.
The company was founded in 2017 in San Mateo, California. Its current lead drug candidate has several potential avenues toward successful treatment. There is a lot of market opportunity for treating various types of leukemia, with a high growth rate expected in the years ahead as the global population ages.
That, combined with KRON’s low RSI, means it could be a good buying opportunity.
Conclusion
As stated, the low RSI rating on each of these stocks could be fleeting. RSI values can change with the market winds, but if you are able to catch a company with an RSI below 30, or even an RSI below 20, it could yield great results.
A stock screener RSI can be an excellent tool for helping you find stocks with an RSI under 30. Tools like these are often necessary because finding companies with a low RSI usually requires diligence. Another tool is an RSI crossover indicator, which will alert you when a specific stock crosses the line into oversold.
As always, do your own research before investing. But hopefully, a list like this can serve as a jumping off point.
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