Warren Buffett often suggests that investors should be cautious when others are greedy and look for opportunities when others display fear. One common method to gauge market fear is through the Relative Strength Index, or RSI. This technical analysis tool evaluates momentum on a scale from zero to 100, where an RSI below 30 indicates that a stock may be oversold.
Wex Inc’s Current Position
On Thursday, Wex Inc (Symbol: WEX) saw its shares plunge into oversold territory with an RSI of 29.9, trading as low as $153.85 each. In comparison, the S&P 500 ETF (SPY) has an RSI of 58.8. For bullish investors, the 29.9 RSI could signal that the recent wave of selling is losing steam, presenting potential buying opportunities. Below is a one-year performance chart for WEX shares:
Understanding WEX’s Trading Range
The chart illustrates that WEX has a low point of $153.85 per share in its 52-week range, while the highest it reached in that time is $244.04. The most recent trade placed shares at $154.18, close to the low end of that spectrum.
Discover 9 other oversold stocks worth attention »
Related Resources:
- Institutional Holders of FSKR
- LCNB Historical PE Ratio
- Short Short ETFs
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
