Warren Buffett’s Strategy: Analyzing Oversold Stocks with RSI

Legendary investor Warren Buffett famously advises investors to be fearful when others are greedy and greedy when others are fearful. A popular method to gauge market fear is the Relative Strength Index (RSI), a technical indicator that measures price momentum on a scale from zero to 100. A stock is deemed oversold if its RSI reading dips below 30.

Spotlight on Standard and Poors Global Inc (SPGI)

In trading on Tuesday, shares of Standard and Poors Global Inc (Symbol: SPGI) fell into oversold territory, recording an RSI of 29.3 after reaching a low of $480.68 per share. This contrasts with the current RSI of the S&P 500 ETF (SPY), which stands at 27.2. A bullish investor might see SPGI’s RSI of 29.3 as an indication that the recent heavy selling may soon be losing steam, presenting potential entry points for buying.

SPGI Performance Overview

Analyzing the chart, we note that SPGI’s 52-week low is $407.69 per share, while its high is $545.39. The most recent trade was at $482.17.

Discover nine other oversold stocks worth your attention »

Also See:

• Atmos Energy YTD Return
• Funds Holding OGI
• TLSA YTD Return

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