Investors Eye BeiGene as Stock Enters Oversold Territory
Understanding Market Sentiment Through RSI
Legendary investor Warren Buffett famously advises to “be fearful when others are greedy, and be greedy when others are fearful.” A tool to help gauge fear levels in stocks is the Relative Strength Index (RSI). This technical analysis indicator measures momentum on a scale from zero to 100, with readings below 30 indicating that a stock may be oversold.
On Friday, shares of BeiGene Ltd (Symbol: BGNE) hit an RSI of 27.7, indicating it was in oversold territory. This came after the stock traded as low as $186.16 per share. In comparison, the S&P 500 ETF (SPY) has a current RSI reading of 54.8. The low RSI for BGNE might suggest that the heavy selling pressure is waning, presenting potential buying opportunities for bullish investors. Below is the one-year performance chart for BGNE:
Examining the chart, BeiGene’s 52-week low stands at $126.9681 per share, while the high reached $248.16. The most recent trade price is $187.66, positioned between these two extremes.
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Additional Resources:
- ETFs Featuring Stocks That Insiders Are Buying
- AKR Average Annual Return
- PGNY Historical Earnings
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
