Investor Warren Buffett advises to remain cautious when others are overly optimistic and to capitalize on opportunities when others are hesitant. One method to gauge fear in a stock is by using the Relative Strength Index (RSI), with a reading below 30 indicating oversold conditions.
On Friday, Nutanix Inc (NTNX) crossed into oversold territory with an RSI of 28.7, as the stock traded as low as $53.67. In comparison, the RSI for the S&P 500 ETF (SPY) was 50.4. This could signal to bullish investors that selling pressure may be waning, presenting a potential buying opportunity. NTNX’s 52-week range shows a low of $26.47 and a high of $73.69, with the stock trading at $53.99 at the time.
It is important for investors to be aware of oversold stocks such as NTNX and to consider potential entry points based on technical indicators like the RSI. By heeding Buffett’s advice on fear and greed in the market, investors can make more informed decisions when trading.
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https://www.nasdaq.com/articles/nutanix-now-oversold-ntnx