L.Ordinary investor Warren Buffett advises to be afraid when others are greedy, and to be greedy when others are afraid. One way we can try to measure the level of fear in a given stock is a technical analysis indicator called the Relative Strength Index, or RSI, which measures momentum on a scale from zero to 100. A stock is considered oversold if the RSI reading falls below 30.
Shares of Kornit Digital Ltd (Symbol: KRNT) entered oversold territory on Tuesday, reaching an RSI of 28.8 after a hand exchange of $ 52.59 per share. For comparison, the current RSI S&P 500 ETF (SPY) reading is 32.2. A bullish investor could view 28.8 RSI KRNT today as a sign that recent major sales are in the process of depletion, and start looking for entry point opportunities on the buying side. The chart below shows the indicators of the CRN’s shares for the year:
Looking at the chart above, KRNT’s bottom point in its 52-week range is $ 52.59 per share, with $ 181.38 for the 52-week high – compared to the last trade at $ 53.22.
The views and opinions expressed herein are those of the author and do not necessarily reflect the views of Nasdaq, Inc.
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