Braskem S A Hits Oversold Mark According to RSI Indicator
Warren Buffett’s wisdom of being fearful when others are greedy—and vice versa—offers key insights for investors. One tool to gauge market sentiment is the Relative Strength Index (RSI), a momentum indicator that ranges from zero to 100. A reading under 30 suggests a stock is oversold.
On Friday, Braskem S A (Symbol: BAK) saw its RSI drop to 29.3, indicating overselling pressure. The stock traded as low as $5.83 per share during the day. In contrast, the S&P 500 ETF (SPY) has a current RSI of 47.1. For bullish investors, BAK’s RSI of 29.3 could signal that heavy selling is slowing down, presenting a potential buying opportunity. Below is BAK’s one-year performance chart:
Analyzing the chart, BAK’s lowest point in its 52-week range is $5.28 per share, while its highest point reached $10.98. The most recent trading price stands at $5.89.
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The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
