Warren Buffett famously says, “Be fearful when others are greedy, and be greedy when others are fearful.” This philosophy can often be applied to stock trading, particularly when using the Relative Strength Index, or RSI, a tool that measures stock momentum on a scale of zero to 100. A stock is deemed oversold when its RSI falls below 30.
On Monday, shares of Biogen Inc (Symbol: BIIB) hit an RSI of 29.8, entering oversold territory after trading as low as $171.11 per share. In contrast, the current RSI for the S&P 500 ETF (SPY) stands at 68.6. This low RSI could signal to bullish investors that the recent intense selling may be subsiding, presenting potential buying opportunities. Below is a chart illustrating the one-year performance of BIIB shares:
Analyzing the chart, we see that Biogen’s 52-week low is $170.71 per share, while its high is $268.295. The last reported trading price was $172.03.
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Additional Resources:
- GEL YTD Return
- CEI Split History
- Top Ten Hedge Funds Holding PFC
The views and opinions expressed herein are those of the author and do not necessarily reflect the views of Nasdaq, Inc.
