Legendary investor Warren Buffett advises to be fearful when others are grasping, and be grasping when others are fearful. A method we will attempt to measure the extent of concern in a given inventory is thru a technical evaluation indicator known as the Relative Energy Index, or RSI, which measures momentum on a scale of zero to 100. A inventory is taken into account to be oversold if the RSI studying falls beneath 30.
In buying and selling on Thursday, shares of ScanSource, Inc. (Image: SCSC) entered into oversold territory, hitting an RSI studying of 24.7, after altering fingers as little as $43.6808 per share. By comparability, the present RSI studying of the S&P 500 ETF (SPY) is 51.6. A bullish investor might take a look at SCSC’s 24.7 RSI studying in the present day as an indication that the current heavy promoting is within the strategy of exhausting itself, and start to search for entry level alternatives on the purchase aspect. The chart beneath exhibits the one 12 months efficiency of SCSC shares:
Wanting on the chart above, SCSC’s low level in its 52 week vary is $31.01 per share, with $53.90 because the 52 week excessive level — that compares with a final commerce of $43.99.
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The views and opinions expressed herein are the views and opinions of the writer and don’t essentially replicate these of Nasdaq, Inc.
