Oxford Square Capital (OXSQ) Loses 7.5% in 4 Weeks, Here's Why a Trend Reversal May be Around the Corner

Core Viewpoint - Oxford Square Capital Corp. (OXSQ) is experiencing significant selling pressure, with a 7.5% decline over the past four weeks, but is positioned for a potential trend reversal due to being in oversold territory and positive earnings outlook from analysts [1]. Group 1: Technical Indicators - The Relative Strength Index (RSI) is a key technical indicator used to determine if a stock is oversold, with a reading below 30 typically indicating this condition [2]. - OXSQ's current RSI reading is 27.24, suggesting that the heavy selling may be exhausting itself and a trend reversal could be imminent [5]. Group 2: Fundamental Analysis - There is strong consensus among sell-side analysts that OXSQ will report better earnings than previously predicted, with the consensus EPS estimate increasing by 14.3% over the last 30 days [7]. - OXSQ holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, indicating a strong potential for a turnaround [8].