Legendary investor Warren Buffett advises to be fearful when others are greedy and greedy when others are fearful. One way to measure the level of fear of a particular stock is to use a technical analysis indicator called the Relative Strength Index (RSI), which measures momentum on a scale of 0 to 100. The RSI reading has fallen below 30.
In Wednesday’s trading, shares of Caesars Entertainment Inc (symbol: CZR) entered oversold territory, dropping to $40.69 per share before reaching an RSI reading of 29.2. By comparison, the S&P 500 ETF (SPY) currently has an RSI value of 39.5. A bullish investor can take his CZR’s 29.2 RSI reading today as a sign that the recent massive sell-off is running out and start looking for entry point opportunities on the buy side. The chart below shows his one-year performance of the CZR stock.
Looking at the chart above, CZR has a 52-week range low of $31.31 per share and a 52-week high of $97.39 per share.
• Top stock owned by Howard Marks
• NERD Options Chain
• Institutional holders of GMS
The views and opinions expressed herein are those of the authors and do not necessarily reflect those of Nasdaq, Inc.