Warren Buffett’s Strategy: Analyzing Netflix’s Recent Market Performance

Legendary investor Warren Buffett advises investors to be cautious when others are overly optimistic and to seize opportunities when fear dominates the market. One useful tool for gauging market sentiment is the Relative Strength Index (RSI), a momentum indicator that ranges from zero to 100. A stock is deemed oversold when its RSI reading falls below 30.

In Monday’s trading session, shares of Netflix Inc (Ticker: NFLX) saw their RSI dip into oversold territory at 29.0, as the stock traded as low as $858.33 per share. For context, the current RSI for the S&P 500 ETF (SPY) stands at 30.4. This 29.0 RSI reading could signal to bullish investors that the recent wave of selling may be nearing its end, presenting potential buying opportunities. Below is the one-year performance chart for NFLX shares:

Reviewing the chart, NFLX’s lowest point over the past year was $542.01 per share, while its highest point reached $1064.50. The last recorded trade was at $869.47.

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Also see:

• Insider Buying
• AESI Options Chain
• IPO Options Chain

The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.