The great investor Warren Buffett advises to be fearful when others are greedy and greedy when others are fearful. One way we can attempt to measure the level of fear in a given stock is through 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 oversold if the RSI reading falls below 30.
In trading on Wednesday, shares of Topgolf Callaway Brands Corp. (symbol: MODG) entered oversold territory, touching an RSI reading of 21.9, after changing hands as low as $17.84 per share. By comparison, the S&P 500 ETF (SPY) currently has an RSI reading of 56.2. A bullish investor could view MODG’s 21.9 RSI reading today as a sign that the recent heavy selloff is in the process of coming to an end, and could begin looking for entry point opportunities on the buy side. The chart below shows the one year performance of MODG shares:
Looking at the chart above, the low point of MODG in the 52-week range is $16.80 per share, with $25.96 as the 52-week high – which compares with a previous trade of $17.79.
, BCOR Shares Outstanding History
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