Pure Storage Shares Surge 3.54% on RSI-Driven Buy Signals as $220M Volume Ranks 448th in Market Activity

Pure Storage (PSTG) closed on October 13, 2025, with a 3.54% increase, marking its strongest single-day performance in recent weeks. The stock traded with a volume of $220 million, ranking 448th in market activity for the day. Analysts noted that the move aligned with broader market optimism in the cloud storage sector, though no direct earnings or product announcements were reported for the company during the period.

Technical indicators suggested a potential short-term rebound, as the stock’s RSI (Relative Strength Index) dipped below critical oversold thresholds earlier in the week. This triggered algorithmic trading activity, with traders using RSI-based strategies to initiate long positions. However, historical back-testing of similar RSI-driven signals revealed mixed efficacy, with average gains of +2.3% offset by losses of -3.3% on unsuccessful trades.

Market participants remained cautious, citing the stock’s susceptibility to broader tech sector volatility. While Pure’s recent pricing action showed resilience against a weak dollar-driven sell-off in global equities, its long-term trajectory remains tied to macroeconomic data releases in the coming weeks. Institutional investors have not shown significant new positioning in the stock, per options chain analysis.

Back-testing of an RSI-oversold strategy (triggered at RSI_14 < 20) from January 2022 to October 2025 revealed limited profitability. The approach generated a cumulative return of approximately 2.5%, with an annualized Sharpe ratio of 0.15. Maximum drawdowns per trade reached 8%, underscoring the risk of relying solely on RSI signals. The analysis suggests that combining RSI with additional filters or extending holding periods may enhance risk-adjusted returns, though standalone use of the indicator shows marginal edge.