Warren Buffett’s Strategy: Watch for Vir Biotechnology’s Oversold RSI
Legendary investor Warren Buffett famously advises to be cautious when others are eager and to seize opportunities when fear grips the market. One method to gauge market sentiment is through the Relative Strength Index (RSI), a technical analysis indicator measuring momentum on a scale from zero to 100. Stocks are deemed oversold when their RSI falls below 30.
On Thursday, shares of Vir Biotechnology Inc (Symbol: VIR) entered oversold territory with an RSI reading of 27.1, trading as low as $8.07 per share. In contrast, the current RSI of the S&P 500 ETF (SPY) sits at 40.2. A bullish investor might interpret VIR’s 27.1 RSI as a potential sign that the recent aggressive selling pressure is waning, suggesting possible buying opportunities.
The chart below illustrates the one-year performance of VIR shares:
Examining this chart, we see that VIR’s 52-week low is $6.56 per share, while the high is $14.45, compared to a recent trade of $8.11.
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The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
