SPX Corp. Becomes Oversold (SPW)

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 SPX Corp. ( SPW) entered into oversold territory, hitting an RSI reading of 24.0, after changing hands as low as $67.19 per share. By comparison, the current RSI reading of the S&P 500 ETF (SPY) is 58.4. A bullish investor could look at SPW's 24.0 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 SPW shares:

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

SPX Corp. 1 Year Performance Chart

Looking at the chart above, SPW's low point in its 52 week range is $56.31 per share, with $85.82 as the 52 week high point — that compares with a last trade of $68.42.

null

More from Stocks

Stocks Search for Direction as Trump Comments Lead to Worries Over China Talks

Stocks Search for Direction as Trump Comments Lead to Worries Over China Talks

Did Trump Just Torpedo the Stock Market Again?

Did Trump Just Torpedo the Stock Market Again?

10 Questions for PayPal Ahead of Its Big Investor Day

10 Questions for PayPal Ahead of Its Big Investor Day

Lowe's Taps Home Depot Veteran As New CEO

Lowe's Taps Home Depot Veteran As New CEO

Bank Stocks Slump After Congress Greenlights Dodd-Frank Rollback

Bank Stocks Slump After Congress Greenlights Dodd-Frank Rollback