Analyzing the Fear Factor: Commercial Metals Co. Hits Oversold Territory
Understanding the RSI Indicator
Legendary investor Warren Buffett famously suggested that investors should act with caution when others are feeling bold and take advantage of opportunities when sentiment is low. One tool to gauge this market sentiment is the Relative Strength Index (RSI), a technical analysis measure ranging from zero to 100. A stock is deemed oversold if its RSI drops below 30.
Commercial Metals Co. (CMC) Recent Performance
On Wednesday, shares of Commercial Metals Co. (Symbol: CMC) plunged into oversold territory with an RSI of 29.3, as its stock traded as low as $47.41 per share. For context, the current RSI of the S&P 500 ETF (SPY) is 46.6. A bullish investor might interpret CMC’s 29.3 RSI as an indication that the intense selling may be nearing its end, possibly signaling an opportunity to buy. The chart below illustrates CMC’s performance over the past year:
52-Week Range Insights
Looking at the performance chart, CMC’s 52-week low stands at $47.41, with its high reaching $64.53. The stock’s last trade was recorded at $47.70, placing it near the lower end of its trading range.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
