Warren Buffett’s Strategy in Action: Diageo Shares Approach Oversold Levels
Legendary investor Warren Buffett often reminds us to be fearful when others are greedy and to be greedy when others are fearful. To gauge the fear level in a stock, investors can use a technical analysis tool called the Relative Strength Index (RSI). This indicator measures momentum on a scale from 0 to 100. Stock values below 30 indicate an oversold condition, suggesting a potential buying opportunity.
On Thursday, shares of Diageo plc (Symbol: DEO) entered oversold territory with an RSI of 29.8, trading as low as $118.41 per share. In contrast, the S&P 500 ETF (SPY) currently holds an RSI of 58.8. For bullish investors, DEO’s current RSI may indicate that the recent selling pressures could be easing, prompting a search for buying opportunities. The chart below illustrates the one-year performance of DEO shares:
Examining the chart, DEO’s 52-week low stands at $117.84 per share, with a high of $154.71, compared to its latest trade at $118.27.
Explore 9 more oversold stocks worth your attention »
Additional Insights:
- Canadian Stocks Crossing Below Their 200-Day Moving Average
- JKHY Videos
- PSQH Market Capitalization History
The views and opinions expressed herein are the author’s own and do not necessarily reflect those of Nasdaq, Inc.
