Market Insights: Moderna Flagged for Oversold Status
Warren Buffett advises investors to act contrary to market sentiment—be fearful when others are greedy, and be greedy when others are fearful. One way to gauge this “fear” in stocks is through a technical analysis tool known as the Relative Strength Index (RSI). The RSI measures momentum on a scale from zero to 100, where a reading below 30 suggests that a stock is oversold.
On Monday, Moderna Inc (Symbol: MRNA) saw its RSI dip into oversold territory, recording a value of 29.9. The stock traded as low as $57.50 per share during the day. In contrast, the current RSI for the S&P 500 ETF (SPY) stands at 66.4. Investors looking for buying opportunities might interpret MRNA’s low RSI as a signal that heavy selling could be coming to an end, suggesting a potential entry point for purchases. Below is the one-year performance chart for MRNA:
When examining the chart, MRNA’s 52-week low is $55.70, while its high reached $170.47. This provides context against the latest trade price of $57.83.
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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.
