Oversold Conditions For Solarwinds (SWI)

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 Solarwinds Inc ( SWI) entered into oversold territory, hitting an RSI reading of 27.3, after changing hands as low as $49.09 per share. By comparison, the current RSI reading of the S&P 500 ETF (SPY) is 46.2. A bullish investor could look at SWI's 27.3 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 SWI shares:

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

Solarwinds Inc 1 Year Performance Chart

Looking at the chart above, SWI's low point in its 52 week range is $36.01 per share, with $61.52 as the 52 week high point — that compares with a last trade of $49.27.

According to the ETF Finder at ETF Channel, SWI makes up 2.74% of the Dynamic Networking Portfolio ETF (PXQ) which is trading lower by about 1.9% on the day Thursday.

null

More from Stocks

How to Invest in Cannabis - In Its Many Forms

How to Invest in Cannabis - In Its Many Forms

5 Stocks That Are Screaming Buys Right Now

5 Stocks That Are Screaming Buys Right Now

Tesla's Battery Tech Is Unrivaled

Tesla's Battery Tech Is Unrivaled

Facebook Could Get a Cushy Boost to Its Top Line From Messenger by 2020

Facebook Could Get a Cushy Boost to Its Top Line From Messenger by 2020

Stocks Rise, GE Dropped From the Dow, Starbucks, Oracle - 5 Things You Must Know

Stocks Rise, GE Dropped From the Dow, Starbucks, Oracle - 5 Things You Must Know