TRI oversold, could be time to buy - Forbes

It reminded readers that legendary investor Warren Buffett advises to be fearful when others are greedy, and be greedy when others are fearful, and said: “One way we can try to measure the level of fear in a given stock is through a technical analysis indicator called the Relative Strength Index, or RSI, which measures momentum on a scale of zero to 100. A stock is considered to be oversold if the RSI reading falls below 30.”

In trading on Wednesday, shares of Thomson Reuters on TSX entered into oversold territory, hitting an RSI reading of 28.4 after changing hands as low as C$37.60 per share, Forbes said. By comparison, the current RSI reading of the S&P/TSX Composite Index is 61.6.

“A bullish investor could look at TRI’s 28.4 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,” Forbes said.

In the chart, TRI’s low point in its 52-week range is C$29.4, and the high is C$42.10.

Thomson Reuters’ Canadian shares finished the week at C$37.10. Its US shares finished the week on the New York Stock Exchange at $33.43. Their 52-week range is $31.09 to $38.73. ■