Ixia Is Now Oversold (XXIA)

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 Ixia ( XXIA) entered into oversold territory, hitting an RSI reading of 24.3, after changing hands as low as $14.42 per share. By comparison, the current RSI reading of the S&P 500 ETF (SPY) is 58.4. A bullish investor could look at XXIA's 24.3 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 XXIA shares:

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

Ixia 1 Year Performance Chart

Looking at the chart above, XXIA's low point in its 52 week range is $9.95 per share, with $22.50 as the 52 week high point — that compares with a last trade of $14.52.

XXIA makes up 1.63% of the SPDR S&P Telecom ETF ( XTL)

If you liked this article you might like

How to Trade Monday's Most Active Stocks -- Rite Aid, BofA, Fitbit, More

Keysight Technologies to Grab Ixia for $1.6 Billion

Cisco Investors Watch Earnings for Look Into the IT Market, Trump's Tech Effect

Here's Why Ixia (XXIA) Stock Is Tanking Today

Insider Trading Alert - DXYN, XXIA And NTWK Traded By Insiders