Legendary investor Warren Buffett advised us to be fearful when others are greedy and greedy when others are fearful. One of the ways he measures the level of fear of a particular stock is by using a technical analysis indicator called the Relative Strength Index (RSI). RSI measures momentum on a scale of 0 to 100. The RSI value falls below 30.
In Tuesday’s trading, shares of Dave & Busters Entertainment Inc. (symbol: PLAY) entered oversold territory after trading low at $37.6601 per share, with RSI hitting 28.5. did. By comparison, the S&P 500 ETF (SPY) currently has an RSI reading of 55.2. Bullish investors may take PLAY’s 28.5 RSI today as a sign that the recent intense sell-off is reaching its limits and start looking for entry point opportunities on the buy side. The graph below shows his one-year performance of the PLAY stock.
Looking at the chart above, PLAY’s 52-week range low is $30.36 per share, while its 52-week high is $47.29 and last traded at $38.09.
The views and opinions expressed herein are those of the authors and do not necessarily reflect those of Nasdaq, Inc.