Warren Buffett’s Wisdom: Analyzing Alibaba’s Oversold Stocks
Renowned investor Warren Buffett once said to be fearful when others are greedy, and to be greedy when others are fearful. One approach to gauge market fear involves using the Relative Strength Index (RSI), a technical analysis tool measuring momentum on a scale from zero to 100. A stock is deemed oversold when its RSI falls below 30.
Alibaba’s RSI Signals Market Sentiment
In trading on Monday, shares of Alibaba Group Holding Ltd (Symbol: BABA) slipped into oversold territory with an RSI reading of 27.0, following trades as low as $105.15 per share. For context, the current RSI for the S&P 500 ETF (SPY) sits at 21.5. This low RSI for BABA suggests that the stock has been significantly sold off, signaling a potential exhaustion of selling pressure. A bullish investor might now view this as an opportunity to look for entry points to buy.
52-Week Performance Overview
Examining the chart below, BABA’s low over the past year reached $68.36 per share, while the 52-week high was $148.43. The last trade price was reported at $105.96.
Discover nine additional oversold stocks worth noting »
Also see:
- POOL Dividend History
- SPPI Historical Stock Prices
- PLD Shares Outstanding History
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
