Buffett’s Wisdom: Navigating Fear with NVIDIA’s RSI Indicator

Warren Buffett’s advice resonates in today’s market: be fearful when others are greedy and be greedy when others are fearful. One way to gauge market sentiment is through the Relative Strength Index (RSI), a technical analysis tool assessing momentum on a scale from zero to 100. Typically, a stock is classified as oversold if its RSI falls below 30.

On Tuesday, shares of NVIDIA Corp (Symbol: NVDA) entered oversold territory, recording an RSI of 29.4 after trading as low as $94.77 per share. For comparison, the current RSI of the S&P 500 ETF (SPY) stands at 20.7. Bullish investors might interpret NVDA’s 29.4 RSI as a signal that the recent intense selling might be nearing its end, prompting them to look for strategic buying opportunities. The chart below illustrates the one-year performance of NVDA shares:

Analyzing the chart, NVDA’s lowest point in its 52-week range is $75.606 per share, while the highest point is $153.13, with the last trade recorded at $94.98.

Discover 9 other oversold stocks worth monitoring »

Explore these additional resources:

• EBC Average Annual Return
• Institutional Holders of SHLD
• MAX Split History

The views and opinions expressed herein are those of the author and do not necessarily reflect the views of Nasdaq, Inc.