Warren Buffett, the titan of investing, once famously remarked to “be fearful when others are greedy, and be greedy when others are fearful.” Wise counsel for any investor navigating the wild seas of the stock market. To gauge the fear factor in a stock, one can turn to the Relative Strength Index (RSI), a technical indicator that measures momentum on a scale of zero to 100. A stock typically enters oversold territory when its RSI reading drops below 30.
Yesterday, in the bustling realm of the stock market, McDonald’s Corp (Symbol: MCD) breached into oversold territory, registering an RSI reading of 28.2, dancing as low as $270.47 per share. Just for comparison, the current RSI reading of the S&P 500 ETF (SPY) is a milder 50.4. For the discerning optimist, MCD’s RSI of 28.2 may signify that the recent frenzy of selling is petering out, hinting at potential entry points ripe for exploration. Take a gander at the illustrious chart below showcasing MCD’s performance over the last one year:
Delving further into the numbers, we observe that MCD’s 52-week spectrum spans from a low of $245.73 per share to a zenith of $302.39, with the closing price standing at $270.09, painting a vivid picture of the stock’s trajectory.
Curious to unearth more on other oversold stocks worth exploring? Check this out »
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Opinions shared here are solely those of the author and may not coincide with those of Nasdaq, Inc.
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