Warren Buffett’s Wisdom Rings True as Western Union Hits Oversold Levels
In a market influenced by emotions, legendary investor Warren Buffett famously advises caution when others show greed and urge for opportunity when the atmosphere turns fearful. A popular method for gauging this fear is the Relative Strength Index (RSI), which assesses a stock’s momentum on a scale ranging from zero to 100. A stock is deemed oversold when the RSI falls below 30.
During Tuesday’s trading session, shares of Western Union Co (Symbol: WU) slipped into oversold territory, recording an RSI reading of 29.7 after trading as low as $10.75 per share. In contrast, the current RSI of the S&P 500 ETF (SPY) stands at 62.7. This situation may prompt bullish investors to view WU’s RSI of 29.7 as a potential signal that the recent pressure to sell is waning, providing opportunities for new buyers. The performance chart for WU over the past year is shown below:
According to the chart, WU’s 52-week performance highlights a low of $10.75 per share and a high of $14.1863, with the last trade recorded at $10.84.
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The views and opinions expressed herein are those of the author and do not necessarily reflect the views of Nasdaq, Inc.
