Legendary investor Warren Buffett advises to be fearful when others are greedy and be greedy when others are fearful. One way we can try to gauge the level of fear in a given stock is with a technical analysis indicator called the relative strength index, or RSI, which measures momentum on a scale of zero to 100. A stock is considered oversold when the RSI drops below 30.
Shares of Graphic Packaging Holding Co (Symbol:GPK) entered into oversold territory during trading on Friday, hitting an RSI reading of 29.8, after trading hands at $20.09 per share. In comparison, S&P 500 ETF (SPY)’s current RSI is 29.8. A bullish investor may view today’s GPK 29.8 RSI as a sign that the recent intense sell-off is in the process of being exhausted and begin looking for buy-side entry opportunities. The chart below shows GPK’s stock performance for the year:
Looking at the chart above, GPK’s 52-week low point is $17.63 per share, with $24.065 as the 52-week high point, compared to a recent trade of $20.30.
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
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