Shares of LYFT (LYFT) have become wildly oversold on poor earnings and guidance. However, the stock is showing signs of life these days. In fact, even RSI, MACD, and Williams’ %R are starting to push higher. We should also note the last time LYFT became this technically oversold with those indicators, the stock ran from about $8.84 to $11.24 several weeks later.
Remember, one of the best ways to make money is by spotting wild, excessive fear, or the most hated stocks no one really wants to touch. In fact, it’s how some of the most well-known investors made their money. Lots of it. Sir John Templeton taught us to buy excessive pessimism.
Warren Buffett says that a “climate of fear is your friend when investing; a euphoric world is your enemy.” Even Baron Rothschild once told investors, “The time to buy is when there’s blood in the streets, even if the blood is your own.”