Oversold Stocks Rebounding - Is it the Time to Buy the Dip

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•  04 Apr 2025
 

Traders often scan for stocks bouncing off oversold RSI levels, and today’s list presents a compelling set of candidates. These are names that were recently hammered down but are now showing signs of strength with technical rebounds, surging volume, and RSI climbing back from deeply oversold territory. Understanding their current price relative to support levels, alongside momentum indicators, gives us a sharper edge in timing potential entries.

Let’s start with $AEHR. After dipping near $6.85 support, it’s rebounded to $7.26 with a 6.06% gain on the day. The RSI moved up from 29.03 to 34.15, signaling that bearish pressure is cooling off. Volume spiked above average, showing renewed interest from traders looking for a bottom.

$ANF, or Abercrombie & Fitch, saw a 4.37% move higher to $73.33. While support isn’t clearly defined here, the stock is reversing from a prior RSI of 26.92 to 32.56. That’s a healthy rebound, supported by more than double the average volume—5.07 million versus 2.85 million. It’s an early sign that sentiment is shifting back in bulls’ favor.

Arhaus ($ARHS) bounced nearly 10% today to $7.75 after finding support at $7.06. The RSI improved significantly from 28.09 to 36.76. Volume here was also well above average, suggesting this rally has legs. If it pushes above $8.00, the path toward its $9.85 resistance looks increasingly likely.

Vita Coco ($COCO) also caught a bid. It moved up 3.48% to $27.94 after defending support at $27. The RSI rebounded from 26.13 to 31.24, and the buying pressure is evident in the volume: 1.66 million shares traded vs. an 860K average. With room to run before its next resistance at $40.30, COCO might have more in the tank.

Carter’s ($CRI) gained 4.53% to $37.18 while RSI climbed out of the 20s and is now sitting at 34.84. Though no support or resistance levels were given, the move looks technically significant and could mark the end of its recent downtrend.

Deckers Outdoor ($DECK) delivered a solid 5.07% bounce to $106.02, just above its $100.88 support. The RSI reversal from 27.73 to 33.96, alongside a sharp rise in volume to 7.94 million (more than double its average), makes this one of the more attractive reversal plays on the list. While resistance sits far away at $223.11, even a partial recovery would offer substantial upside.

Janus International ($JBI) moved 4.70% higher to $6.90 after touching support at $6.59. RSI leapt from 26.17 to 34.70, confirming that the rebound is more than just a one-day wonder. With volume spiking to 2.32 million shares, this name might see a continuation if it holds above $6.90.

Kohl’s ($KSS) had a standout session, soaring nearly 8% to $7.17. It respected support at $6.63 and surged with RSI bouncing to 33.24 from a prior 27.32 reading. Volume exploded to 25.8 million—nearly double the average—indicating a potential sentiment reversal is underway. Resistance sits up at $12.05, offering attractive upside potential if the momentum continues.

Novavax ($NVAX) made one of the strongest moves of the day, rallying 11.43% to $6.24 after touching down at $5.60 support. RSI shot up from an oversold 22.44 to 35.11, and volume surged to 9.14 million. It’s a textbook rebound from oversold territory, with resistance at $8.38 in sight.

Steven Madden ($SHOO) gained 1.90% to close at $24.10, rebounding off $23.65 support. The RSI ticked up from 29.86 to 32.33, a mild but encouraging signal. Volume was solidly above average at 3.51 million, and the stock looks to be stabilizing for a potential push toward its $33.96 resistance.

Skechers ($SKX) climbed 2.49% to $50.20 after defending the $48.96 area. RSI improved from 28.09 to 31.77 with volume nearly tripling its average. The trend suggests accumulation, and if $51 is cleared, it could unlock a stronger move higher.

Victoria’s Secret ($VSCO) exploded 13.80% to $16.95, coming off support at $14.87. Its RSI surged from 25.40 to 35.29, and volume doubled to over 11 million shares. This kind of price and RSI move often precedes a sustained rally. With resistance all the way up at $27.64, this could be just the beginning.

Wayfair ($W) also turned heads, jumping 3.83% to $26.05 with volume soaring to 17.29 million—more than triple average. RSI improved to 31.71 from 28.96, and though support wasn’t listed, the stock appears to have reversed from its recent downtrend. The next hurdle lies at $40.26.

Lastly, Werner Enterprises ($WERN) edged up 2.05% to $27.90, rebounding off support at $27.34. Its RSI pushed higher from 27.73 to 32.97, and while volume remains modest, it’s nearly double its average, suggesting early accumulation by smarter hands.

From a broader perspective, these RSI reversals—especially when paired with sharp volume spikes and bounces near key support—offer high-probability setups for disciplined traders. The ideal time to enter oversold plays is not when RSI is deep in the red, but when it starts curling back above 30 with momentum and confirmation from price and volume. This helps reduce false signals and improves entry timing.

As always, combine these signals with a defined risk level, typically just below support, and allow room for volatility. Oversold doesn’t always mean undervalued, but in markets where fear creates opportunity, these are the names worth watching closely in the sessions ahead.