Tencent Music Entertainment Group is now oversold (TME)


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

During Friday’s trading, shares of Tencent Music Entertainment Group (ticker: TME) entered oversold territory, hitting an RSI reading of 28.7, after changing hands as low as $5.94 per share. By comparison, the current RSI reading of the S&P 500 ETF (SPY) is 41.3. A bullish investor might view TME’s RSI of 28.7 today as a sign that the recent strong selloffs are running out and starting to look for entry point opportunities on the buy side. The chart below shows the one-year performance of TME stock:

Looking at the chart above, TME’s low point in its 52-week range is $5.94 per share, with $32.2481 as its 52-week high – compare with a last trade of 6.20 $.

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


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