Warren Buffett, the venerable investment guru, has long preached the wisdom of being greedy when others are fearful and fearful when others are greedy. The Relative Strength Index (RSI), a technical analysis tool measuring stock momentum on a scale of zero to 100, offers a glimpse into the level of fear surrounding a stock. A reading below 30 indicates that a stock is oversold.
During Friday’s trading session, shares of Sony Group Corp (Symbol: SONY) found themselves in oversold territory, achieving an RSI reading of 29.7 while trading as low as $88.71 per share. For reference, the current RSI reading of the S&P 500 ETF (SPY) stands at 63.7. To a bullish investor, SONY’s RSI reading of 29.7 today may signal the exhaustion of recent heavy selling, thereby hinting at potential opportunities for entry on the buy side. The chart below depicts Sony’s one-year stock performance:
Observing the chart, SONY’s 52-week low is $79.62 per share, with the 52-week high at $100.94, in contrast to the last trade of $88.82.
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