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The legendary investor Warren Buffett advises to be fearful when others are greedy and to be greedy when others are fearful. One way to try to measure the level of fear in a particular stock is through a technical analysis indicator called the Relative Strength Index, or RSI for its acronym in English, which measures momentum on a scale from zero to 100. A stock is considered oversold if the RSI reading falls below 30.
In Monday's trading, Gogo Inc (Symbol: GOGO) shares entered oversold territory, reaching an RSI reading of 29.99 after trading at a low of $8.88 per share. For comparison, the current RSI reading of the S&P 500 ETF (SPY) is 63.0. A bullish investor might interpret today's RSI reading of 29.99 for GOGO as a sign that the recent massive sell-off is in the process of exhausting, and begin to look for buying opportunities. The chart below shows the performance of GOGO shares over the past year:
Observing the above chart, the lowest point of GOGO in its 52-week range is $6.1699 per share, with $16.82 as the highest point in 52 weeks, compared to a last trade of $8.93.