$WLD The daily RSI is 24.8, entering oversold territory.
Let's use this figure to break down the RSI.
RSI 50 is often seen as the dividing line between strength and weakness: staying above 50 over the long term indicates that upward momentum is dominant, while staying below it suggests the opposite.
I generally use the RSI as a warning of overbought or oversold conditions, and look at it alongside support and resistance levels and trading volume, rather than making decisions based on it alone.
Indicators can be inaccurate, so never skip a stop-loss: deciding in advance what to do if your analysis is wrong matters more than whether your prediction is right.
Let's use this figure to break down the RSI.
RSI 50 is often seen as the dividing line between strength and weakness: staying above 50 over the long term indicates that upward momentum is dominant, while staying below it suggests the opposite.
I generally use the RSI as a warning of overbought or oversold conditions, and look at it alongside support and resistance levels and trading volume, rather than making decisions based on it alone.
Indicators can be inaccurate, so never skip a stop-loss: deciding in advance what to do if your analysis is wrong matters more than whether your prediction is right.