DigitalOcean Hits Oversold Mark: A Closer Look at Investor Sentiment
Warren Buffett once said to be fearful when others are greedy and greedy when others are fearful. One way to gauge investor fear in a stock is through the Relative Strength Index, or RSI, a technical analysis tool ranging from zero to 100. A stock is deemed oversold when its RSI falls below 30.
DigitalOcean’s Current Position
On Monday, shares of DigitalOcean Holdings Inc (Symbol: DOCN) dropped into oversold territory, recording an RSI of 27.8 after trading as low as $35.12 per share. In contrast, the S&P 500 ETF (SPY) has an RSI of 40.9. Investors could interpret DOCN’s RSI of 27.8 as a signal that intense selling may be winding down, indicating potential buying opportunities.
52-Week Performance Overview
According to the chart below, DOCN’s lowest point in its 52-week range is $23.65, while the highest is $44.80. The most recent trading price stands at $35.33.
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The views and opinions expressed herein are those of the author and do not necessarily reflect the opinions of Nasdaq, Inc.
