Technical Analysis Flags 5 Oversold Stocks

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•  07 Feb 2026
 

•   CRM  
   
  +1.40%
•   FDS  
   
  -1.98%
•   ROKU  
   
  +3.11%
•   VEEV  
   
  +0.52%
•   VRSK  
   
  -0.50%

$CRM is trading with an RSI(14) of 21.71, placing it deep in oversold territory after an aggressive multi-week pullback. In large-cap software names, readings below 25 are statistically uncommon and often precede reflex rallies driven by short covering and institutional rebalancing. The stock remains in a confirmed downtrend below its short- and intermediate-term moving averages, so this is not yet a structural reversal. However, the combination of scale, liquidity, and extreme momentum compression increases the probability of a tradable bounce if RSI curls back above 30 and price begins reclaiming short-term resistance.

$ROKU has fallen sharply in recent weeks, pushing its RSI to 22.41 while trading within a broader sideways structure rather than a prolonged structural breakdown. That distinction matters because oversold readings inside ranges tend to resolve with sharp mean reversion moves. With beta near 2, volatility can accelerate both downside and upside momentum, and when sellers exhaust themselves at these levels, snapback rallies can be swift. A stabilization phase followed by expanding volume would strengthen the case for a short-term reversal attempt.

$VEEV is printing an RSI of 21.17 as broader software weakness continues to pressure growth names. While the prevailing trend remains lower, extreme momentum compression often signals that downside velocity is slowing. Stocks with consistent institutional sponsorship frequently experience tactical rebounds once forced selling subsides. If price begins consolidating near support and RSI pushes back through the 30 threshold, the probability of a multi-session recovery increases, even if the longer-term trend remains under pressure.

$FDS has reached an RSI reading of 18.18, placing it in rarefied territory below the 20 level that historically does not persist for long. Such extreme momentum readings typically reflect capitulation rather than orderly distribution. Even within established downtrends, RSI under 20 often leads to at least a countertrend rally as positioning normalizes. The key distinction here is between a temporary relief bounce and a full trend reversal, and traders should frame expectations accordingly while watching for early momentum stabilization signals.

$VRSK stands out with an RSI of 16.20, one of the most compressed readings in the group. Momentum at this level reflects aggressive liquidation and emotional selling pressure. Historically, when RSI reaches the mid-teens, mean reversion probability increases materially, particularly if price approaches multi-month support zones. While the broader structure remains technically bearish, such extreme oversold conditions frequently precede sharp reflex moves once selling intensity fades.

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