If I may offer an opinion...
Quite the contrary, I do see some signs of buying into this. The foot print is there.... A stock that has an average volume of some 800k shares per day transacts with volume 6 times its average for 2 candles, with long tails does suggest that there is some buying... how else the rally from the lows of the candles? (look at the hourly chart to see this) So the first signs of buying may have been spotted but whether it arrests the downside really depends on a lot of factors. Normally, I would like to look for a selling climax, observe if there is any signs of buying, observe if a retest of a level below the most recent low attracts more supply, or look for buying interest to come in before taking a countertrend trade. So from a selling climax, there may be signs of churning or buying and the long tail may be an indication of it... that is a starting point. The subsequent candles or bars should shed more light on the demand and supply situation at each price level and from there, see if a trade may be taken, or it may be redistribution before resumption of the downside.
Now on NPTN, there has been a prior background of distribution before this heavy sell off occurred. The sell off in Mar marked a bearish change in behaviour and that was the first warning sign, the divergence in buying volume in april was a second warning sign. So this stock was being readied for some serious marking down.
I do not use RSI. Generally, oscillators need to be used with care.... many people assume that when an oscillator hits very oversold levels, there may be a bounce... the reality can be the opposite where it stays in oversold condition for a long time before bouncing.... look at stocks that are trending very strongly... do u not see that rsi or any of the oscillators stay in overbought or oversold condition for a prolonged time?
