Warren Buffett famously advises investors to adopt a cautious approach when others are overly optimistic and to seize opportunities when fear dominates the market. An effective tool to gauge this sentiment is the Relative Strength Index (RSI), a technical analysis metric that ranges from 0 to 100. When a stock’s RSI falls below 30, it is considered oversold, indicating potential buying opportunities.
On Monday, Apellis Pharmaceuticals Inc (Symbol: APLS) saw its RSI plunge into oversold territory at 27.5, with shares trading as low as $27.07. In contrast, the S&P 500 ETF (SPY) currently has an RSI of 64.3. For bullish investors, APLS’s low RSI suggests that the intense selling pressure may be waning, providing a possible entry point for future purchases. Below is the performance chart for APLS over the past year:
Reviewing the performance chart, APLS’s 52-week low stands at $26.28 per share, while its high reaches $73.80. This indicates the stock is currently trading near the lower end of its range, with the last trade recorded at $27.04.
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Further Reading:
- Paul Singer Stock Picks
- Top Ten Hedge Funds Holding KIM
- DENN Historical PE Ratio
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
