Been watching the market lately and there's something interesting happening when fear really kicks in. You know that Warren Buffett saying about being greedy when others are fearful? Well, that's exactly what technical traders look for using RSI, this momentum indicator that goes from 0 to 100.

When RSI drops below 30, it's basically screaming that a stock is oversold. That's the point where heavy selling starts to run out of steam and smart money sometimes starts looking for entry points.

I noticed Madrigal Pharmaceuticals (MDGL) just hit that territory recently. The stock was trading around $458 with an RSI reading of 29.6 - textbook oversold setup. For context, that's way lower than the broader market. The S&P 500 ETF is sitting at an RSI of 42.5, so there's a real disconnect here.

Looking at the bigger picture, MDGL's 52-week range shows $265 as the low and $615 as the high, with the last trade around $464. That tells you there's been some serious volatility, but also that the stock still has room to move from these levels.

The thing about stocks with RSI below 30 is they often signal a shift. The panic selling that drove them down is exhausting itself. Whether it bounces or continues lower depends on the fundamentals, but from a pure technical standpoint, this is the kind of setup that gets traders' attention. If you're the type to hunt for oversold opportunities, this is definitely worth keeping on your radar.