44 days ago • Posted by William Ramstein
Netflix in oversold lands: is it becoming cheap ?
A stock is considered to be oversold if the RSI reading falls below 30. Shares of Netflix entered into oversold territory yesterday EOD, hitting an RSI reading of 29.2, after changing hands as low as $493.69 per share. By comparison, the current RSI reading of the S&P 500 ETF (SPY) is 48.1. A bullish investor could look at NFLX's 29.2 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. The chart below shows the one year performance of NFLX shares: Source: Forbes