The Relative Strength Index (RSI) is a widely used momentum oscillator in technical analysis that measures the speed and change of price movements for a stock or index on the Pakistan Stock Exchange (PSX). It's an essential tool for technical analysis of PSX stocks as it gauges the health of a price trend and helps detect if a security is becoming overbought or oversold.
It is displayed as a line that oscillates between 0 and 100. The standard calculation period for RSI is 14 days.1
Where to Find the RSI for PSX Companies & Stocks
You can easily find the current and historical RSI values for all PSX stocks using various charting tools and financial data platforms.
StockIntel provides this critical momentum data directly on its platform:
Individual Company Pages: Visit the dedicated page for any PSX company (e.g., ENGRO, HUBC, MCB) to view the RSI and its current daily value.
PSX Stock Screener: Use the screener tool to filter or sort all listed PSX companies based on their current RSI value. This allows you to quickly spot stocks that are near the crucial overbought (above 70) or oversold (below 30) zones.
PSX Pivot Points: Visit the Pivot Points page to see RSI values in comparison with other technical indicators.
PSX Technical Charts: In the Technical Charting section, real time intraday RSI for PSX stocks can be seen.
How to Interpret PSX Stock Price-Action using RSI (Overbought/Oversold)
The RSI helps technical analysts and traders on the PSX identify price extremes, signaling potential reversals or corrections in a stock's price:2
RSI Level | Condition | Interpretation for PSX Trading | Trading Implication |
RSI > 70 | Overbought (Excessive Buying) | The PSX stock has seen a rapid, significant price surge. Buying momentum is likely unsustainable in the short term. | Potential Sell Signal: Traders may look to book profits, anticipating a downward price correction or pullback. |
RSI < 30 | Oversold (Excessive Selling) | The PSX stock has dropped rapidly and may be temporarily undervalued. Selling pressure is potentially reaching its limit. | Potential Buy Signal: Investors may look for attractive entry points, anticipating a price rebound or relief rally. |
RSI 30-70 | Neutral / Trend-Following | The market is balanced, with momentum favoring the existing trend (above 50 for bullish, below 50 for bearish). | Action is generally based on trend continuation or other indicators. |
Key Considerations for Using RSI in the PSX Market
While the 70/30 levels are common, effective use of the RSI for PSX companies requires nuance:
Strong Trends Ignore 70/30: In a strong bull run on the PSX, the RSI can remain overbought (above 70) for extended periods.3 Selling purely because RSI hits 70 can lead to missing out on significant gains.
Confirmation is Crucial: For reliable signals on PSX stocks, always seek confirmation from other technical indicators (like MACD, Volume) or by checking the stock's fundamental news (earnings, dividends, etc.).
Liquidity: RSI signals can be less reliable for low-volume or less-liquid scrips listed on the Pakistan Stock Exchange, potentially leading to 'false' signals or whipsaws.