The market is inherently cyclical, moving between euphoria and fear, optimism and correction. This cycle sees a shift from high optimism and rising prices to profit booking and corrections. In 2025 too, we find ourselves in the midst of such a correction phase, with market participants feeling the weight of recent downtrends. However, the key to successful trading and investing during such times is not to chase underperformers but to focus on stocks that continue to outperform or demonstrate long-term strength.
One strategy for identifying these winning stocks is the Bold Bulls strategy, which focuses on identifying stocks showing strong bullish trends even during market corrections. The key tool in this strategy is the Relative Strength Index (RSI). Let us first understand RSI and how it helps investors spot “Bold Bulls.”
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The Relative Strength Index (RSI) is a momentum oscillator that measures the speed and change of price movements. It ranges from 0 to 100 and is typically used to identify overbought or oversold conditions in a market. An RSI above 70 generally indicates that a stock is overbought, while an RSI below 30 suggests it is oversold. For the Bold Bulls strategy, however, we focus on the trend’s strength.
An RSI above 60 on monthly, weekly, and daily charts signals a strong bullish trend, with higher values indicating stronger momentum.
The advantage of using RSI on monthly, weekly, and daily charts
RSI is more than just a short-term momentum indicator. Using it across multiple timeframes (monthly, weekly, and daily) gives us a holistic view of a trend’s strength.
- Monthly RSI: A strong monthly RSI above 60 indicates long-term strength and potential for sustained growth.
- Weekly RSI: A weekly RSI above 60 signals momentum and strength in the medium-term trend.
- Daily RSI: A daily RSI above 60 suggests strong short-term momentum, making it useful for traders looking to capitalise on immediate opportunities.
When a stock shows a strong RSI across these three timeframes, it stands out as a Bold Bull with robust long-term and medium-term trends and strong short-term momentum.
Three stocks that qualify for the Bold Bulls Strategy
Based on the RSI criteria, we have identified three stocks that exhibit strong bullish trends,
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