Investors are well aware of Warren Buffett’s sage advice to “be fearful when others are greedy and be greedy when others are fearful.” When it comes to gauging the fear factor in a particular stock, one of the key technical analysis tools is the Relative Strength Index (RSI). This indicator measures momentum on a scale of zero to 100, with a reading below 30 signaling that a stock is oversold.
During Thursday’s trading session, Twilio Inc (Symbol: TWLO) saw its shares plunge into the oversold territory, registering an RSI reading of 29.8, and reaching as low as $61.06 per share. In comparison, the current RSI reading of the S&P 500 ETF (SPY) stands at 65.2. For bullish investors, TWLO’s RSI of 29.8 today could indicate that the recent intense selling pressure is waning, potentially marking the beginning of opportunities on the buy side. The chart below illustrates TWLO’s one-year performance:
Upon examining the chart, TWLO’s 52-week low stands at $45.02 per share, while the 52-week high is $79.70, contrasting with a recent trade value of $61.40.
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Additional Resources:
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The foregoing opinions are those of the author and may not align with the views of Nasdaq, Inc.
