Alphatec Holdings becomes oversold (ATEC)
LLegendary investor Warren Buffett advises to be fearful when others are greedy and to be greedy when others are afraid. One way to try to measure the level of fear of a given action is to use a technical analysis indicator called the Relative Strength Index, or RSI, which measures momentum on a scale from zero to 100. An action is considered as oversold if the RSI reading falls below 30.
During Tuesday’s trading, shares of Alphatec Holdings Inc (ticker: ATEC) entered oversold territory, hitting an RSI of 29.5, after changing hands as low as $ 13.92 per share. In comparison, the current RSI reading for the S&P 500 ETF (SPY) is 59.1. A bullish investor might view ATEC’s 29.5 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 ATEC share:
Looking at the chart above, ATEC’s low point in its 52 week range is $ 4.31 per share, with $ 19.36 as a 52 week high, compared with a last trade of 14, $ 00.
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