Warren Buffett reminds investors to shift their strategies based on market sentiment. As he famously said, investors should be fearful when others are greedy, and vice versa. One common method to assess fear in the market is the Relative Strength Index (RSI), which evaluates momentum on a scale of 0 to 100. When the RSI drops below 30, a stock is typically considered oversold.
On Monday, shares of Golden Ocean Group Ltd (Symbol: GOGL) reached an RSI of 29.8, indicating they entered oversold territory after trading as low as $8.83 per share. In contrast, the S&P 500 ETF (SPY) currently has a healthier RSI of 53.0. A bullish investor might interpret GOGL’s low RSI as a signal that intense selling may be waning, prompting a search for buying opportunities. The chart below illustrates GOGL’s performance over the past year:
Analyzing the chart, GOGL’s shares hit a 52-week low of $8.52 and a high of $15.77, with the most recent trade at $8.84.
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Also see:
- KFY Videos
- Funds Holding SPYD
- Rafael Holdings Next Earnings Date
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
