A popular investment advice from well-known investor Warren Buffett is this: be cautious when others are greedy, and be greedy when others are cautious. As such, many investors utilize this advice by looking at a stock’s relative strength index, or RSI. The RSI measures the momentum of a stock on a scale of zero to 100 — a stock is thought to be oversold if the RSI falls below 30.
On Thursday, July 20, Lowe’s Companies Inc,’s (NYSE:$LOW) stock was considered by traders and investors to be oversold after seeing an RSI of 29.9. This is almost half of S&P 500 ETF’s (NYSEARCA:$SPY) current RSI of 66.5. This could be an opportunity for a bullish investor to find a way to enter the buy side of the stock. Lowe’s low RSI suggests that the recent increase in its selling is about to end.
Lowe’s current stock price is around $72. Its 52 week low is $64.987 and its 52 week high is $86.25, in comparison.
Featured Image: twitter
