Warren Buffett suggests to be afraid when others are greedy, and be greedy when others are afraid. One way to measure the level of panic 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. And overbought if it passes 70. This indicator can help traders “forecast” what the price of the stock might do.

On Wednesday, shares of Aurora Cannabis Inc (Symbol: ACB) and the RSI went below 30 entering into oversold territory. The RSI was at 29.4 after the price per share went as low as $4.86. By analogy, the current RSI reading of the S&P 500 ETF ( SPY ) is 19.4. A bullish investor could look at ACB’s 29.4 RSI reading today as a sign that the recent massive selling is in the process of exhausting itself and begin to look for entry point opportunities on the buy side. ACB’s low point in its 52-week range is $4.004 per share, with $12.525 being the 52-week high point.

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