Warren Buffett’s Fear-and-Greed Strategy: AMD’s Oversold Status
Warren Buffett, the legendary investor, famously suggests that one should be fearful when others are greedy and greedy when others are fearful. To assess market sentiment, investors often use technical analysis tools like the Relative Strength Index (RSI). This indicator measures momentum on a scale from zero to 100. An RSI reading below 30 typically indicates that a stock is oversold.
AMD Enters Oversold Territory
On Friday, shares of Advanced Micro Devices Inc. (Symbol: AMD) fell into oversold territory, recording an RSI of 26.5 after trading as low as $83.67 per share. In contrast, the S&P 500 ETF (SPY) currently has an RSI reading of 24.8. A bullish investor might interpret AMD’s RSI of 26.5 as an indication that the recent heavy selling may be nearing exhaustion, thus presenting potential buy opportunities. Below is a chart depicting AMD’s performance over the past year:
Price Performance Review
According to the chart, AMD’s shares have a 52-week low of $83.67 and a 52-week high of $187.28, with the latest trade reflecting a price of $87.08.
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The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
