Sale off of technological stocks continues. Twitter and Facebook, the biggest movers last week, could not find support yesterday; moreover, they fell by 7.7% and 2%, respectively. Both shares are in the oversold area, according to RSI index that fell below the signal level 30 on the daily charts. However, technical analysis points out that the proper moment to buy will only be when the current sales impulse will lose power and the RSI will return above 30.
Current sale of IT shares should be considered as a correction as this sector was the key driver of the market in the previous months. Twitter Lost 27% in the latest three trading sessions, but this huge move returned the company’s capitalization to the levels of May.
