Oversold conditions can signal potential short-term reversal opportunities when selling pressure becomes exhausted.
How to find oversold stocks
Look for stocks with low RSI values and significant recent declines.
The US Oversold Stocks Screener
These are the rules used to build this stock list.
Methodology
We identify oversold stocks using technical indicators such as RSI and price relative to moving averages, combined with liquidity filters.
Screener Filters
Liquidity Filters
Average Volume above 50K
We require a minimum average daily volume of 50,000 shares to ensure sufficient liquidity for investors.
Market Cap above $300M
We exclude very small companies to avoid illiquid and highly speculative stocks.
technical
RSI below 30
An RSI value below 30 indicates oversold technical conditions.
ChartMill Value below -8
A ChartMill Value below -8 indicates oversold technical conditions.
Price below Declining 50-Day MA
Confirms short-term downtrend.
Momentum Filters
1-Month Performance below -10%
Highlights recent price weakness.
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FAQ
What does oversold mean in stocks?
Oversold usually describes stocks that have dropped sharply and may be stretched on technical indicators or price action. Traders often look at oversold conditions for possible rebound setups, though no bounce is guaranteed.
Can oversold stocks keep falling?
Yes. Oversold conditions can persist when selling pressure remains strong. That is why many traders wait for confirmation, such as improved momentum or support levels, before acting on an oversold screen.
How does the Oversold Stocks screen work?
We identify oversold stocks using technical indicators such as RSI and price relative to moving averages, combined with liquidity filters.
What should investors look for when using the Oversold Stocks screen?
Look for stocks with low RSI values and significant recent declines.