Warren Buffett’s Strategy in Action: Elanco Animal Health Sees Oversold Conditions
Warren Buffett, a legendary investor, famously advises to be fearful when others are greedy and to be greedy when others are fearful. One way to gauge fear in stock trading is using the Relative Strength Index (RSI), a technical analysis tool that measures momentum on a scale from zero to 100. Typically, a stock is viewed as oversold when its RSI falls below 30.
In trading on Wednesday, Elanco Animal Health Inc (Symbol: ELAN) reached an RSI of 29.9, indicating it is in oversold territory. The stock traded as low as $13.105 per share. In comparison, the S&P 500 ETF (SPY) has an RSI of 61.8. A bullish investor might interpret ELAN’s 29.9 RSI as a sign that the recent selling pressure is waning, signaling potential buying opportunities. Below is the one-year performance chart for ELAN shares:
According to the chart, ELAN has a low point of $8.52 and a high point of $18.80 over the past year. The last trade was recorded at $13.29.
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Also see:
- Institutional Holders of UUP
- Institutional Holders of TSO
- APTS Historical Stock Prices
The views and opinions expressed herein are the author’s and do not necessarily reflect those of Nasdaq, Inc.
