Valero Energy Corp Hits Oversold Territory Amid Market Volatility
Legendary investor Warren Buffett advises that one should be fearful when others are greedy and greedy when others are fearful. One way to gauge market fear is through a technical analysis indicator called the Relative Strength Index (RSI). The RSI measures momentum on a scale of zero to 100, indicating overbought or oversold conditions. A stock is deemed oversold when its RSI reading falls below 30.
On Thursday, shares of Valero Energy Corp (Symbol: VLO) entered oversold territory with an RSI reading of 29.5, following trades as low as $118.24 per share. In comparison, the current RSI reading of the S&P 500 ETF (SPY) stands at 31.7. A bullish investor might interpret VLO’s 29.5 RSI as a signal that the recent heavy selling is nearing exhaustion, providing potential entry point opportunities for buying.
The chart below illustrates the one-year performance of VLO shares:
Reviewing the chart, VLO’s low point in its 52-week range is $116.839 per share, while the 52-week high reached $184.79. The last recorded trade for VLO is $118.83.
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Additional Resources:
- Larry Robbins Stock Picks
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- Top Ten Hedge Funds Holding ESML
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
