Oncolytics Biotech (ONCY) Loses 8.8% in 4 Weeks, Here's Why a Trend Reversal May be Around the Corner

Core Viewpoint - Oncolytics Biotech Inc. (ONCY) is experiencing significant selling pressure 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 momentum oscillator that indicates whether a stock is oversold, with readings below 30 suggesting oversold conditions [2]. - ONCY's current RSI reading is 29.42, indicating that the heavy selling pressure may be exhausting itself and a trend reversal could be imminent [5]. Group 2: Fundamental Indicators - There is a strong consensus among sell-side analysts that ONCY will report better earnings, with the consensus EPS estimate increasing by 19.6% over the last 30 days [7]. - An upward trend in earnings estimate revisions typically correlates with price appreciation in the near term [7]. Group 3: Analyst Ratings - ONCY 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].