Relative Strength Index, or RSI, is the most frequently used technical indicators in the stock market. Besides identifying overbought and oversold positions, the indicator has been embraced as a trend confirming measure. The overbought level is 70 and oversold level is 30. Whenever the stock / index reverses from oversold region and heads above the 50 level, the trend is said to be in a confirmed upside.
The volumes also play a crucial role in the trend of RSI at 50 level. Strong / higher volumes provide added advantage to the trend. When co-related to other indicators like average directional index (ADX) and Standard Deviation (SD) can even provide significant edge in the trading.
Based on a quick run on the NSE 500 index, following 26 stocks have crossed the 50 mark (RSI) over the past three trading sessions as per their daily chart pattern and could move up further in the days ahead.
|Stocks Crossing RSI 50 level|
|Data source: Spider Software India|