RSI fell to 29.9, $SOXLB dropped another 4.78% in a day, closing at 45.62, not far from the 14-day low of 38.81. Seeing it at this level, I’m actually not as panicked—the decline has been sharp and relentless, and in the short term it really does look a bit oversold.
But being oversold doesn’t mean the decline is over. The 14-day high is still 109.11, which shows it has barely had a decent rebound on the way down; there’s a wall of bagholders overhead. If 38.81 breaks, it’ll be a new low.
I’d rather wait for a confirmation signal before deciding: if it can get back above 49.70, I’ll change my mind and look for a rebound; if it can’t, I’ll keep treating it as a trend.
At this level of oversold, do you believe in a rebound or the trend?
$SOXLB
#SOXLB #Market analysis
But being oversold doesn’t mean the decline is over. The 14-day high is still 109.11, which shows it has barely had a decent rebound on the way down; there’s a wall of bagholders overhead. If 38.81 breaks, it’ll be a new low.
I’d rather wait for a confirmation signal before deciding: if it can get back above 49.70, I’ll change my mind and look for a rebound; if it can’t, I’ll keep treating it as a trend.
At this level of oversold, do you believe in a rebound or the trend?
$SOXLB
#SOXLB #Market analysis