Soleno Therapeutics (SLNO) Loses 26% in 4 Weeks, Here's Why a Trend Reversal May be Around the Corner

Core Viewpoint - Soleno Therapeutics, Inc. (SLNO) has experienced a significant decline of 26% over the past four weeks, but it is now in oversold territory, suggesting a potential for a turnaround as analysts expect better earnings than previously predicted [1] Group 1: Technical Indicators - The Relative Strength Index (RSI) is a key technical indicator used to identify oversold conditions, with a reading below 30 indicating a stock may be oversold [2] - SLNO's current RSI reading is 28.11, indicating that heavy selling may be exhausting itself, which could lead to a price rebound [5] - Stocks oscillate between overbought and oversold conditions, and the RSI helps investors identify potential entry points for a rebound [3] Group 2: Fundamental Indicators - There is a strong consensus among sell-side analysts to raise earnings estimates for SLNO, resulting in a 26.1% increase in the consensus EPS estimate over the last 30 days [7] - An upward trend in earnings estimate revisions typically correlates with price appreciation in the near term [7] - SLNO holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate trends and EPS surprises, indicating a strong potential for a turnaround [8]