Warren Buffett’s Wisdom Applied: Analyzing Telefonica Brasil’s Striking RSI
Investor Sentiment Peaks as Stocks Hit Oversold Levels
Legendary investor Warren Buffett famously advises to be fearful when others are greedy, and to be greedy when others are fearful. One tool to gauge the level of fear surrounding a stock is the Relative Strength Index (RSI). This technical analysis indicator measures momentum on a scale from zero to 100. When an RSI reading dips below 30, a stock is deemed oversold.
On Friday, trading activity showed that shares of Telefonica Brasil SA (Symbol: VIV) slipped into this oversold condition, recording an RSI of 29.99 after trading as low as $8.94 per share. In contrast, the current RSI reading for the S&P 500 ETF (SPY) stands at 47.1. For bullish investors, VIV’s 29.99 RSI suggests that the stock’s recent decline may be nearing its end, presenting potential buying opportunities.
The following chart illustrates VIV’s performance over the past year:
A closer look at the chart reveals that VIV’s 52-week low hit $8.015, while the 52-week high reached $11.43. The stock’s last recorded trade price was $8.95, reflecting its current standing in this range.
Discover 9 other oversold stocks that could be worth your attention »
For Further Research:
- ETFs With Notable Inflows
- CUZ Shares Outstanding History
- RTW Shares Outstanding History
The views and opinions expressed herein are those of the author and do not necessarily reflect the views of Nasdaq, Inc.
