Just spotted something interesting in the market today. You know that famous Warren Buffett quote about being fearful when others are greedy? Well, there's a technical tool that helps us measure exactly that kind of fear in individual stocks, and it's called the Relative Strength Index or RSI.

Here's the thing about RSI: it runs from 0 to 100, and when a stock's RSI drops below 30, that's when traders start calling it oversold. Basically, the selling pressure has gotten so intense that statistically, a bounce often follows.

I noticed Madrigal Pharmaceuticals (MDGL) just hit that oversold territory on Friday. The RSI reading came in at 29.6, with shares trading as low as $458. For context, the broader market measured by SPY is sitting at an RSI of 42.5, so MDGL is significantly more beaten down.

When you see stocks with RSI below 30 like this, it's worth paying attention. The heavy selling that's been hammering MDGL looks like it might be running out of steam. That's typically when contrarian investors start eyeing potential entry points.

Looking at the bigger picture, MDGL's 52-week range shows a low of $265 and a high of $615. The stock is currently trading around $465, so it's closer to the lower end of that range. For anyone looking at oversold stocks today, this kind of technical setup is exactly the kind of scenario that gets traders interested in the buy side.