Relative strength alert for music entertainment group Tencent

0


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

During Monday’s trading, shares of Tencent Music Entertainment Group (ticker: TME) entered oversold territory, hitting an RSI of 27.3, after changing hands as low as $ 7.34 a share. In comparison, the current RSI reading of the S&P 500 ETF (SPY) is 34.9. A bullish investor might take TME’s 27.3 RSI reading today as a sign that the recent sell-off is running out and start looking for entry point opportunities on the long side. The graph below shows the performance over one year of the TME share:

Looking at the chart above, TME’s low point in its 52 week range is $ 7.03 per share, with $ 32.2481 as a 52 week high, compared with a last trade of 7.38. $.

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.


Share.

Comments are closed.