EXACT Sciences Becomes Oversold (EXAS)

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 Thursday, shares of EXACT Sciences Corp. ( EXAS) entered into oversold territory, hitting an RSI reading of 22.2, after changing hands as low as $6.93 per share. By comparison, the current RSI reading of the S&P 500 ETF (SPY) is 48.4. A bullish investor could look at EXAS's 22.2 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. The chart below shows the one year performance of EXAS shares:

START SLIDESHOW:
Find out what 9 other oversold stocks you need to know about »

EXACT Sciences Corp. 1 Year Performance Chart

Looking at the chart above, EXAS's low point in its 52 week range is $6.93 per share, with $12.30 as the 52 week high point — that compares with a last trade of $7.83.

null

More from Stocks

Micron Shares Soar; Chipmaker Is 'Managing for Profitability' Now, Says Analyst

Micron Shares Soar; Chipmaker Is 'Managing for Profitability' Now, Says Analyst

Dow Slips 178 Points; S&P 500 and Nasdaq Also Decline

Dow Slips 178 Points; S&P 500 and Nasdaq Also Decline

Facebook CEO Mark Zuckerberg Deflects Tough Questions From European Parliament

Facebook CEO Mark Zuckerberg Deflects Tough Questions From European Parliament

What Does China's Tariff Deal Mean for Automakers Like Tesla?

What Does China's Tariff Deal Mean for Automakers Like Tesla?

Lowe's Taps Home Depot Veteran As New CEO

Lowe's Taps Home Depot Veteran As New CEO