Beam Therapeutics becomes oversold | Nasdaq


LLegendary investor Warren Buffett advises to be afraid when others are greedy, and to be greedy when others are afraid. 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 Wednesday’s trading, shares of Beam Therapeutics Inc (ticker: BEAM) entered oversold territory, hitting an RSI reading of 29.8, after changing hands as low as $29.54 per share. By comparison, the current RSI reading of the S&P 500 ETF (SPY) is 30.7. A bullish investor might view BEAM’s RSI of 29.8 today as a sign that the recent strong selloffs are running out and starting to look for entry point opportunities on the buy side. The graph below shows the one-year performance of BEAM shares:

Looking at the chart above, BEAM’s low point in its 52-week range is $29.54 per share, with $138.5219 as its 52-week high – compare with a last trade of 29.96 $.

Find out what 9 other oversold stocks you need to know »

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