Every seasoned investor knows the golden rule: be wary when the crowd is overly optimistic and seize opportunities when others are hesitating. One key metric we use to gauge market sentiment is the Relative Strength Index (RSI), a technical indicator that measures momentum on a scale of zero to 100. When the RSI falls below 30, a stock is deemed oversold.
During Tuesday’s trading session, Asana Inc (Symbol: ASAN) found itself in the depths of oversold territory, recording an RSI of 26.8 as its shares traded hands as low as $14.71 each. For perspective, the RSI of the S&P 500 ETF (SPY) currently sits at 57.2. An astute investor might interpret ASAN’s RSI of 26.8 as a signal that the recent intense sell-off may be nearing its end, opening doors for potential entry points on the buying side. The performance chart below illustrates the journey of ASAN shares over the past year:
When exploring the aforementioned chart, one discovers that ASAN’s lowest point within its 52-week range stands at $14.71 per share, with $26.27 marking the highest point — a contrast to the most recent trade value of $14.89.
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The perspectives articulated here represent the opinions of the author and may not align with those of Nasdaq, Inc.
