Legendary investor Warren Buffett’s advice to be “fearful when others are greedy and greedy when others are fearful” is underscored by the Relative Strength Index (RSI), a technical analysis indicator that gauges market momentum. A stock is deemed oversold when its RSI falls below 30.
On Monday, Entergy Louisiana Inc Collateral Trust Mortgage (Symbol: ELC) saw its RSI drop to 28.2 after trading as low as $20.22 per share, indicating potential exhaustion of recent heavy selling. In contrast, the S&P 500 ETF (SPY) holds an RSI of 39.1. ELC’s 52-week low is $19.86, while the high is $22.67, with its last trade at $20.24.
