Orix Corp Hits Oversold Mark: Is It Time to Buy?
Legendary investor Warren Buffett once said to be fearful when others are greedy, and greedy when others are fearful. One method to gauge the level of fear surrounding a stock is through the Relative Strength Index (RSI), a technical analysis tool that measures momentum on a scale from zero to 100. Typically, a stock is considered oversold if the RSI reading drops below 30.
During trading on Tuesday, Orix Corp (Symbol: IX) fell into oversold territory with a concerning RSI of 28.9, after shares dipped to as low as $109.24. For reference, the S&P 500 ETF (SPY) currently holds an RSI of 59.9. Investors who are optimistic could interpret IX’s low RSI as a signal that the recent intense selling pressure may be dwindling, presenting a potential buying opportunity. The one-year performance chart for IX shares is illustrated below:
Examining the chart, IX’s lowest point in the past year is $86.05, while it peaked at $125.84 per share. As of the latest trading, IX shares are valued at $109.29.
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The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
