Warren Buffett’s investment strategy emphasizes being cautious when others are optimistic and opportunistic when fear prevails. On Wednesday, shares of DAQO New Energy Corp (NYSE: DQ) fell to an oversold status with a Relative Strength Index (RSI) of 29.0, indicating potential exhaustion of selling pressure. The stock traded as low as $14.87 per share before closing at $15.36.
In comparison, the S&P 500 ETF (SPY) has an RSI of 67.8. DQ’s recent performance shows a 52-week range from a low of $14.86 to a high of $41.43, suggesting significant volatility. Investors may see the current low RSI as a buying opportunity.
