Warren Buffett’s Wisdom: Analyzing Charter Communications’ Oversold Status
Veteran investor Warren Buffett emphasizes that we should be fearful when others are greedy, and greedy when others are fearful. One method 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. A stock is deemed oversold if its RSI falls below 30.
On Wednesday, Charter Communications Inc. (Symbol: CHTR) saw its shares dip into oversold territory, registering an RSI of 29.9 after trading as low as $312.385 per share. In contrast, the current RSI of the S&P 500 ETF (SPY) stands at 21.3. This 29.9 RSI reading for CHTR may suggest to bullish investors that the recent significant sell-off is nearing exhaustion, prompting a search for potential buying opportunities. Below is the one-year performance chart for CHTR shares:
According to the chart, CHTR has experienced a 52-week low of $236.08 per share and a high of $415.27, in comparison to the last trade price of $319.24.
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The views and opinions expressed herein are those of the author and do not necessarily reflect the views of Nasdaq, Inc.
