Warren Buffett’s timeless advice echoes in the world of trading: be fearful when others are greedy, and be greedy when others are fearful. One method to gauge the level of fear in a stock is through the Relative Strength Index (RSI), a momentum indicator ranging from 0 to 100. When the RSI falls below 30, it signals an oversold condition.
On Friday, Galapagos NV (Symbol: GLPG) ventured into oversold territory, registering an RSI of 29.5, as its shares dipped to $35.72 each. In contrast, the S&P 500 ETF (SPY) currently holds an RSI of 68.4. An optimistic investor may interpret GLPG’s RSI of 29.5 as a hint that the recent intense selling pressure is near a halt, signaling potential entry points for buyers. The chart below illustrates the one-year journey of GLPG shares:
Inspecting the chart, GLPG’s 52-week low stands at $31.86 per share, while the high is $45.21 — in comparison, the most recent trade was at $35.84.
Discover other 9 oversold stocks worth exploring »
Further Perspectives:
Delve into ATAC Historical Stock Prices
Explore the Institutional Holders of CAPR
Learn more about Funds Holding GIK
The opinions expressed here belong to the author and may not align with those of Nasdaq, Inc.
