RSI is almost getting to oversold. Should you buy now?

Even though after spectacular earnings, AAPL dropped from its high of $145 per share, all they way down to $131. This represented an 12% lost to the markets. However, fear not of the drop as on the RSI shows that it is being severely oversold almost as it reaches almost to 30. The RSI is used to measure if a stock is undervalued or overvalued between 50-60, it is fair valued. If it Is 40 or below, it is sort of undervalued and over 60, starting to get into overvalued territory. It is currently below 45, which means that it is undervalued now. If it is undervalued, should you buy yet or should I wait? I believe that we should be more conservative now. Do not go all WSB on AAPL but in my opinion, Buy in around 20% of the money you want to invest in AAPL and see what happens. Our next support is at $130 per share and if it drops below that point, I believe you should cut the amount of AAPL in half just in case it dips more. However, AAPL is starting to slow its losses now and looks like it is set up for gains in the market. Often AAPL drops if it reaches a high, then consolidates then goes even higher. It is a matter of weeks, before the next breakout. Warning! I am not a financial adviser and this chart is used for analysis and that only. Investing is risky. Happy trading and investing and see ya later alligator!

Comment:

It was a change my 10.6% as monkey said. Thanks monkey!