Warren Buffett’s Wisdom: Assessing Fear and Opportunity in TELUS Corp
Understanding Stock Fear through RSI Analysis
Warren Buffett, the legendary investor, famously advises to be fearful when others are greedy and to be greedy when others are fearful. A common method to gauge investor fear in a stock is through the Relative Strength Index (RSI), a technical analysis tool measuring momentum on a scale from zero to 100. Typically, a stock is viewed as oversold if its RSI falls below 30.
During trading on Tuesday, TELUS Corp (Symbol: TU) reached an RSI reading of 29.97, indicating oversold conditions, as its shares fell to a low of $15.56 each. In contrast, the current RSI for the S&P 500 ETF (SPY) stands at 51.2. For bullish investors, TU’s 29.97 RSI might suggest that the recent heavy selling is nearing its end, potentially creating buying opportunities. The performance chart below illustrates TU’s stock movements over the past year:
Examining the chart, TU’s lowest price in the past 52 weeks was $14.63, while its highest reached $19.135. The last recorded trade was $15.63.
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Additional Resources:
- LADR Options Chain
- CATY Price Target
- Funds Holding Northrop Grumman
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
