Warren Buffett’s Wisdom Applied: Is AIV Stock Oversold?
Understanding Market Sentiment Through RSI Indicator
Famed investor Warren Buffett once said to be cautious when the market is greedy and to seize opportunities when fear runs high. One way to gauge fear in stock trading is through the Relative Strength Index (RSI), a technical analysis tool that assesses price momentum on a scale from zero to 100. A reading below 30 typically indicates that a stock may be oversold.
On Friday, shares of Apartment Investment & Management Co (Symbol: AIV) dropped into this oversold category, reaching an RSI of 29.5 after trading as low as $8.33 per share. In comparison, the current RSI for the S&P 500 ETF (SPY) stands at 47.1. This low RSI reading could signal to bullish investors that the recent intense selling pressure may be slowing down, presenting potential buying opportunities. Below is the one-year performance chart for AIV shares:
A closer look at the chart reveals that AIV’s 52-week range includes a low of $5.825 per share and a high of $9.485. The most recent trade at $8.33 indicates that the stock is positioned closer to its low within this range.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
