Renowned investor Warren Buffett once sagely remarked, “Be fearful when others are greedy, and be greedy when others are fearful.” It’s quite a nugget of investor wisdom. A technique to gauge fear and greed in the stock market is to use the Relative Strength Index (RSI), which measures momentum from 0 to 100. If the RSI falls below 30, a stock is considered oversold.
On a recent trading day, CONMED Corp (Symbol: CNMD) saw its shares slip into oversold territory, with an RSI reading of 29.7 after hitting as low as $76.68 per share. In contrast, the RSI reading for the S&P 500 ETF (SPY) stands at 54.9. This situation could be interpreted by bullish investors as a possible signal that the intense selling pressure on CNMD may be nearing its end, potentially hinting at opportunities for entry on the buying side. The chart below illustrates CNMD’s performance over the past year:
From the chart, we see that CNMD has ranged between a low of $76.68 per share and a high of $138.47 over the last 52 weeks, with the most recent trade at $77.31.