The technology sector is a wild beast. Periods of fast-rising stocks and investor euphoria invariably come crashing down in painful downturns. Today’s investor has to be ever vigilant, and, perhaps even more importantly, prepared to seize on opportunities when others are panic selling and dumping stocks.
The RSI, or Relative Strength Index, is a valuable tool for discerning such opportunities. By comparing a stock’s strength on days when prices climb to its strength on days when prices descend, investors can gauge the stock’s potential short-term performance. An asset is deemed oversold when its RSI falls below the 30 mark, as characterized by Benzinga Pro.
Let’s explore the latest round of severely oversold players in the technology sector with an RSI hovering around or below 30.
Security Matters Public Limited Company (SMX)
- SMX clinched a $5 million contract with R&I for NATO supply chain transparency on Jan. 12. Following this development, the company’s stock took a beating, plunging approximately 23% over the last five days and hitting a 52-week low of $0.3030.
- RSI Value: 17.48
- SMX Price Action: Shares of SMX managed to eke out a marginal 1% gain, closing at $0.3290 on Wednesday.
WeTrade Group, Inc.
- WeTrade Group revealed a discrepancy of $2 million in its 2022 annual report due to an internal investigation on Dec. 1. This news sent the company’s stock sliding around 4% over the past five days and hitting a 52-week low of $0.0330.
- RSI Value: 29.70
- WETG Price Action: Shares of WeTrade Group dipped 1.1% to close at $3.48 on Wednesday.
Kingsoft Cloud Holdings Limited (KC)
- Kingsoft Cloud Holdings reported a third-quarter FY23 revenue of $222.754 million, falling short of the consensus of $244.77 million on Nov. 21. Tao Zou, Chief Executive Officer of Kingsoft Cloud, underlined, “We expect to deepen our strategic planning and engagement with Xiaomi and Kingsoft in their comprehensive AI cloud demand to capture market opportunities, maintain the healthy trajectory of continued profitability improvement, and generate value for our shareholders.” Subsequently, the company’s stock tumbled approximately 28% over the past month and reached a 52-week low of $2.52.
- RSI Value: 27.89
- KC Price Action: Shares of Kingsoft Cloud Holdings slipped 1.1% to close at $2.70 on Wednesday.
Your resilience as an investor will be tested time and again. But the sweet taste of victory, akin to finding gold amid the rubble, is worth every moment of the struggle. These stocks, tossed aside and left for dead, may just be the lifeline your portfolio needs in these turbulent times.
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