Legendary investor Warren Buffett advises to be fearful when others are greedy and greedy when others are fearful. One way to gauge the fear level in stocks is through a technical analysis tool called the Relative Strength Index (RSI). This metric measures price momentum on a scale of 0 to 100, indicating that a stock is considered oversold if the RSI falls below 30.
Patrick Industries Hits Oversold Mark
On Thursday, shares of Patrick Industries Inc (Symbol: PATK) entered oversold territory, recording an RSI of 29.5 after prices dipped to $126.15 per share. In contrast, the S&P 500 ETF (SPY) has a current RSI of 44.0. For bullish investors, PATK’s 29.5 RSI might suggest that recent significant selling is slowing down, creating potential buy opportunities.
The chart below reveals the one-year performance of PATK shares:
Price Performance Snapshot
Examining the performance data, PATK’s lowest price in the past 52 weeks was $74.72, while the highest reached $148.35. The latest trade closed at $125.98, indicating a notable fluctuation within this range.
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The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
