Oversold Flashcards
1
Q
What are the main fundamental indicators that can show an oversold asset
A
P/E ratio and RSI
2
Q
Why might an asset be oversold
A
Bad news regarding the company
Poor outlook for company going forward
Out of favour industry etc
3
Q
How long can oversold conditions last for
A
A long time bruh
4
Q
What does oversold mean
A
When asset prices are well below normal
5
Q
Why do you need to be careful is a company has a low P/E
A
It could be acc oversold or there could be reasons why compnay is out of favour, use 10Q to analyse
6
Q
What level of RSI might indicate and oversold asset
A
Low level below 30
7
Q
How might you use RSI to buy an oversold asset
A
After it goes below 30 and then starts to rise above it you could consider a buy
8
Q
IS OVERSOLD A BUY SIGNAL
A
NO
