RSI Alert For Auxilium Pharmaceuticals (AUXL)

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 Monday, shares of Auxilium Pharmaceuticals Inc ( AUXL) entered into oversold territory, hitting an RSI reading of 24.5, after changing hands as low as $13.90 per share. By comparison, the current RSI reading of the S&P 500 ETF (SPY) is 59.1. A bullish investor could look at AUXL's 24.5 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 AUXL shares:

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

Auxilium Pharmaceuticals Inc 1 Year Performance Chart

Looking at the chart above, AUXL's low point in its 52 week range is $13.90 per share, with $29.37 as the 52 week high point — that compares with a last trade of $13.97.

According to the ETF Finder at ETF Channel, AUXL makes up 2.52% of the SPDR S&P Pharmaceuticals ETF ( XPH) which is trading higher by about 0.3% on the day Monday.
null

If you liked this article you might like

Trade-Ideas: Auxilium Pharmaceuticals (AUXL) Is Today's Strong On High Relative Volume Stock

Health Care Stocks: A Year in Review and Predictions for 2015

How Will Endo International (ENDP) Stock Be Affected Today by This Analyst Action?

Stock Market Today: S&P Suffers Worst Day in Six Months as Bears Invade

Stock Market Today: Dow Unloads 300 Points in Broad-Based Selloff