Replies to post #23584 on Seven Arts Entertainment Inc (SAPX)

[sbc357]

Yes definitely.

A daily RSI(14) of less than 30 is oversold but not necessarily a buy signal.

A buy signal IF the stock is otherwise a healthy stock, which SAPX is NOT.

The other possibility could be as you have stated.

I have been watching the RSI closely here because I was once told by a great trader that in an unhealthy stock, when the RSI drops below 30, that also carries a very high probability of BK. Basically, toxic financing (such as death spiral financing) carrying it too far for the company to ever recover.