Buffett’s Wisdom Applied: Sanofi’s Stock Shows Signs of Oversold Conditions
Investors Take Note: RSI Indicates Potential Buying Opportunity for Sanofi
Warren Buffett famously said to be fearful when others are greedy and greedy when others are fearful. A useful measure for determining the level of fear around a stock is the Relative Strength Index (RSI). This technical analysis tool ranks momentum on a scale from zero to 100, identifying oversold conditions when a stock’s RSI dips below 30.
On Monday, shares of Sanofi (Symbol: SNY) fell into the oversold category, recording an RSI of 29.98. The stock prices dropped as low as $53.51 per share. In contrast, the current RSI for the S&P 500 ETF (SPY) stands at 65.5. For bullish investors, the low RSI number could indicate that significant selling pressure is beginning to wane, prompting a closer look for potential buying opportunities. The chart below illustrates the performance of SNY over the past year:
SNY’s 52-week range reflects a low of $42.63 per share and a high of $58.97, with the last traded price at $53.66.
Discover 9 other oversold stocks worth your attention »
Also see:
- Funds Holding KALL
- Funds Holding OPAD
- Funds Holding GGUS
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
