LLegendary investor Warren Buffett advises to be afraid when others are greedy, and to be greedy when others are fearful. One way to try to gauge the fear level of a given stock is to use 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 as oversold if the RSI reading falls below 30.
In Thursday’s trading, shares of Argo Group International Holdings Ltd (Symbol: ARGO) entered oversold territory, reaching an RSI reading of 29.8, after changing hands as low as $30.78 per share. . By comparison, the current RSI reading of the S&P 500 ETF (SPY) is 70.4. A bullish investor might take ARGO’s RSI of 29.8 today as a sign that the recent selloffs are running out and are starting to look for entry point opportunities on the buy side. The graph below shows the one-year performance of ARGO shares:
Looking at the chart above, ARGO’s low point in its 52-week range is $30.78 per share, with $61.295 as its 52-week high – compare with a last trade of $30.97 .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.