Buffett’s Wisdom: Analyzing Amazon’s Oversold Status using RSI
Legendary investor Warren Buffett famously advises to be “fearful when others are greedy, and greedy when others are fearful.” To gauge the current level of fear in the stock market, investors often utilize the Relative Strength Index (RSI). This technical analysis tool measures momentum on a scale from zero to 100, indicating that a stock is considered oversold if its RSI falls below 30.
Amazon’s RSI Signals Possible Buying Opportunity
On Thursday, shares of Amazon.com Inc (Symbol: AMZN) entered oversold territory with an RSI reading of 29.7, after trading as low as $176.92 per share. Comparatively, the S&P 500 ETF (SPY) currently has an RSI of 31.7. For bullish investors, AMZN’s 29.7 RSI could signal that heavy selling may be subsiding, prompting a search for potential buying opportunities. Below is the one-year performance chart for AMZN shares:
AMZN’s 52-Week Performance Analysis
The chart indicates that AMZN’s 52-week low was $151.61 per share, with the 52-week high reaching $242.52. The shares last traded at $181.48, reflecting a significant gap from the high.
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Also See:
- DHI Next Dividend Date
- Funds Holding TETC
- Funds Holding MAQC
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
