Oversold Conditions For Rush Street Interactive (RSI)

Legendary investor Warren Buffett emphasizes the principle of being cautious when markets are euphoric and seeking opportunities when sentiment is negative. The Relative Strength Index (RSI) is a widely used technical indicator that measures momentum on a scale from 0 to 100. A stock is typically considered oversold when its RSI drops below 30.

In trading on Wednesday, shares of Rush Street Interactive Inc (Symbol: RSI) entered oversold territory, hitting an RSI reading of 29.4 after trading as low as $24.18 per share. By comparison, the current RSI reading of the S&P 500 ETF (SPY) is 68.1. A bullish investor could look at RSI’s 29.4 reading today as a sign that the recent heavy selling is exhausting itself, and begin to look for entry point opportunities on the buy side. The chart below illustrates the one-year performance of RSI shares:

Looking at the chart above, RSI’s 52-week low stands at $15.51 per share, while the 52-week high is $34.53, which compares with the last trade price of $24.28.

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