Warren Buffett’s Wisdom Applied: Vaxcyte Inc Hits Oversold Levels
Investors often wonder when to buy or sell stocks. Legendary investor Warren Buffett reminds us to be cautious when others are greedy and to seize opportunities when fear grips the market. One way to gauge fear in a stock is through the Relative Strength Index (RSI), a technical analysis tool that operates on a scale of zero to 100. If the RSI falls below 30, the stock is generally seen as oversold.
On Friday, shares of Vaxcyte Inc (Symbol: PCVX) plunged into oversold territory with an RSI reading of 27.1, trading as low as $80.30 per share. For comparison, the S&P 500 ETF (SPY) has a current RSI of 45.6. This low RSI could suggest to bullish investors that the intense selling might be over, thereby presenting potential buying opportunities. Below is a chart showing the one-year performance of PCVX shares:
Examining the chart, we see that Vaxcyte’s lowest price over the past year was $53.83 per share, while its highest reached $121.055. Currently, the last trade occurred at $80.93.
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Also see:
- Water Utilities Dividend Stocks
- HLMN Average Annual Return
- CSP Past Earnings
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
