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 Domtar Corp ( UFS) entered into oversold territory, hitting an RSI reading of 29.2, after changing hands as low as $67.45 per share. By comparison, the current RSI reading of the S&P 500 ETF (SPY) is 58.8. A bullish investor could look at UFS's 29.2 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 UFS shares: Looking at the chart above, UFS's low point in its 52 week range is $67.45 per share, with $96.02 as the 52 week high point — that compares with a last trade of $68.55. According to the ETF Finder at ETF Channel, UFS makes up 3.10% of the Guggenheim Timber ETF ( CUT) which is trading higher by about 0.3% on the day Thursday.
HOST // Robert Powell
Retirement Planning Event
More from Stocks
Revisiting Housing and 2 Homebuilder Stocks to Watch
Builder confidence has ticked up of late heading into the crucial spring selling season.
Stocks Fall as Wall Street Awaits Fed's Decision on Rates, FedEx Sinks
Stocks are tumbling as investors look ahead to Federal Reserve's decision on interest rates and bond sales later Wednesday.
Apple Unveils New AirPods With Wireless Charging and More Talk Time
Apple developed a new chip specifically for the latest version of the popular headphones, which allows for faster connection times.