Shenandoah Telecommunications goes oversold (SHEN)


THELegendary investor Warren Buffett advises to be fearful when others are greedy and to be greedy when others are afraid. One way to try to measure the fear level of a given action is to use a technical analysis indicator called the Relative Strength Index, or RSI, which measures momentum on a scale of zero to 100. An action is considered oversold if the RSI reading falls below 30.

Shares of Shenandoah Telecommunications Co (ticker: SHEN) entered oversold territory on Wednesday, hitting an RSI of 27.0, after changing hands as low as $ 28.36 per share. In comparison, the current RSI reading of the S&P 500 ETF (SPY) is 65.2. A bullish investor might take SHEN’s 27.0 RSI today as a sign that recent massive selling is running out, and start looking for entry point opportunities on the long side. The chart below shows the one-year performance of SHEN shares:

Looking at the chart above, SHEN’s low point in its 52 week range is $ 28.25 per share, with $ 61.53 as a 52 week high, compared with a last trade of 28.37. $.

Check Out The 9 Other Oversold Stocks You Should Know »

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Source link


About Author

Leave A Reply