Warren Buffett’s Strategy: Analyzing Stock Fear with RSI
Legendary investor Warren Buffett suggests a unique approach: be fearful when others are greedy and be greedy when others are fearful. One way 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. An RSI reading below 30 indicates that a stock is considered oversold.
GBTG Shows Oversold Signals
On Wednesday, shares of Global Business Travel Group Inc (Symbol: GBTG) entered oversold territory, achieving an RSI of 28.1 after trading as low as $6.00 per share. In contrast, the S&P 500 ETF (SPY) currently has an RSI of 53.7. A bullish investor may interpret GBTG’s 28.1 RSI reading as a sign that recent heavy selling could be nearing exhaustion, presenting potential buying opportunities.
Performance Overview
The chart below illustrates GBTG’s performance over the past year:
Examining the chart, GBTG reached a 52-week low of $5.30 per share and hit a 52-week high of $9.60. The most recent trade occurred at $6.00.
Learn about 9 other oversold stocks to consider.
Related Information:
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- IAU Shares Outstanding History
- HGLD Videos
The views and opinions expressed herein are those of the author and do not necessarily reflect the views of Nasdaq, Inc.
