For 5 Small-Cap Stocks, The RSI Falls Below 25

RSI is a popular technical tool that is used to measure the overall trend behind price swings. Traders can predict whether a momentum is coming to an end and whether situatations are overbought or oversold. There have been subsequent interpretations and expansions since the first introduction of the Relative Strength Oscillator.

For example , rather than  use Wilders levels of 70 and 20 to find extreme market trends, many traders instead favor using levels of 85 and 25 as  a more reliable method of using the indicator. An important point to consider when trading with the RSI oscillator is that rather than actually reflecting a market ready for reversal, it can simply prove signs of a prolonged strong move. This is the case when the market is likely to remain in extreme reading for an extended time.

ACCO Brands Corporation (NYSE:ACCO) currently has an RSI of 24.33. This year, the company has a year-to-date performance down -32.23%. The stock, as of the last close, traded up 51.04% from its 52 week lows and was 50.83% behind its 52 week highs.

The latest closing price was -35.04% down from the SMA200 while the distance from the SMA 50 and the SMA 20 was -29.84% and -21.78% respectively. ACCO engages in the design, manufacture, marketing, and distribution of office products primarily in the United States, Australia, the United Kingdom, and Canada.

ATP Oil & Gas Corporation (NASDAQ:ATPG) engages in the acquisition, development, and production of oil and natural gas properties primarily in the Gulf of Mexico and the United Kingdom sector of the North Sea. The RSI of ATP Oil & Gas Corporation is at 22.52. The stock’s 2012 performance has remained down at -94.43%.

Its price, as of the latest close, was 32.26% up from the 52 week low and was 97.17% below the 52 week high. The stock’s latest closing price was -93.39% down from the average 200 day price while it kept its distance from the SMA 50 at -86.70% and -75.14% compared with the SMA 20.

Knight Capital Group Inc (NYSE:KCG)’s RSI reading has hit 20.36. The company so far in this year moved down -75.04% and its monthly performance stands at -74.87%.

The stock was up 29.96% compared with 52 week lows and was 78.93% below 52 week highs. Its latest closing price was -75.35% down from the average-price of 200 days while it kept the distance from the SMA 50 at -70.23% and -56.92% compared with the SMA 20. KCG, a financial services company, provides access to the capital markets across multiple asset classes to buy-and sell-side firms and corporations.

Lone Pine Resources Inc (NYSE:LPR) engages in the exploration, development, and production of oil and gas properties in Canada. Lone Pine Resources Inc’s RSI is now at 19.12.The stock has shown an downtrend of -80.74% this year with a monthly performance of -43.75% and a 3-month performance down -61.32%.

Its latest closing price was down -75.60% from an average-price of 200 days while it maintained a distance from SMA 50 at -46.51% and -39.33% compared with the SMA 20. Its shares were up 2.27% compared with 52 week lows and was 86.58% below 52 week highs.

Servicesource International Inc (NASDAQ:SREV) has a RSI reading of 19.22. Year-to-date performance of the stock stands at +-50.54% and fell -42.00% in last three months and -54.80% in the previous twelve months.

Its price, as of the latest close, was -0.64% down from its 52 week low and was 58.12% below its 52 week high. Its latest closing price was -45.35% down from the average-price of 200 days while it stayed away from the SMA 50 at -33.88% and -23.05% compared with the SMA 20. SREV manages the service contract renewals process of maintenance, support and subscription agreements for technology.

Disclosure: The views and opinions expressed in this article are exclusively those of the authors who have no stake in any stocks mentioned, and hold no plan to acquire any stake within the next 5 days.