RSI now reading 26. Lowest level since 2022, is it now time for a bounce?

Looking at Snowflake here as its stock has been sold off a further 11% after the initial 20% decline following its earnings release. Currently, its stock is trading at around $161.88 a share. The reason Snowflake looks interesting here is because of the RSI technical indicator. The last time the indicator pointed to such ‘oversold’ conditions was back in November of 2022, as highlighted on the chart. The RSI reached a level of 28.3, it is currently reading 26.9. Following the sell-off back in 2022, the stock then went to rise around 30%. Granted that was a big rise in such a short period of time, and by no means does that suggest that a similar scenario will play out here. However, an upward correction of some sort could now occur within the next week or so. The conservative potential upside gain could be up to 4-5% from current levels. Support currently sits at $159.72, which is yesterday’s low. A sell-off below this level would then shift the focus towards the area of $154-$155.