Warren Buffett’s Wisdom: ASML Hldg NV Hits Oversold Levels Amid Market Fear

Understanding the Relative Strength Index: A Tool for Investors

Legendary investor Warren Buffett suggests a strategic approach to market emotions: be fearful when others are greedy and be greedy when others are fearful. One way to gauge fear in the market is through the Relative Strength Index (RSI), a technical analysis tool that measures momentum on a scale from zero to 100. An RSI reading below 30 indicates that a stock is considered oversold.

On Wednesday, shares of Asml Hldg NV (Symbol: ASMLF) fell into oversold territory with an RSI reading of 29.9, as prices dipped to $676.76 per share. In contrast, the current RSI for the S&P 500 ETF (SPY) stands at 61.8. Bullish investors might interpret ASMLF’s low RSI as a sign that the recent selling trend is nearing its end, suggesting potential buying opportunities. Below is a chart showing the performance of ASMLF shares over the past year:

Examining the chart, ASMLF’s lowest price within the past year is $570.05 per share, while its 52-week high is $1135.44. The most recent trade concluded at $681.00.

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Also see:

• CRI Options Chain
• ESI Insider Buying
• PME Historical Stock Prices

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