2015/6/25 0:22:56
Source: Web
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Legendary investor Warren Buffett advises to be fearful when
others are greedy, and be greedy when others are fearful. 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 Sierra Wireless Incorporated (Toronto: SW)
entered into oversold territory, hitting an RSI reading of 28.6, after changing
hands as low as $32.65 per share. By comparison, the current RSI reading of the
S&P/TSX Composite Index is 51.2. A bullish investor could look at SW’s 28.6
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.
(Credit: Web)