General Communication Becomes Oversold (GNCMA)

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 Friday, shares of General Communication Inc ( GNCMA) entered into oversold territory, hitting an RSI reading of 29.9, after changing hands as low as $8.41 per share. By comparison, the current RSI reading of the S&P 500 ETF (SPY) is 52.3. A bullish investor could look at GNCMA's 29.9 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 GNCMA shares:

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

General Communication Inc 1 Year Performance Chart

Looking at the chart above, GNCMA's low point in its 52 week range is $7.36 per share, with $10.43 as the 52 week high point — that compares with a last trade of $8.48.

According to the ETF Finder at ETF Channel, GNCMA makes up 2.16% of the S&P SmallCap Utilities Portfolio ETF ( PSCU) which is trading lower by about 0.3% on the day Friday.

null

More from Stocks

9 Stocks Goldman Sachs Thinks Will Blow Wall Street's Performance Away in 2019

9 Stocks Goldman Sachs Thinks Will Blow Wall Street's Performance Away in 2019

Trump, China Trade, Target and Las Vegas Casinos - 5 Things You Must Know

Trump, China Trade, Target and Las Vegas Casinos - 5 Things You Must Know

Quick Read: 3 Things for Investors to Know Before Wednesday's Trading Session

Quick Read: 3 Things for Investors to Know Before Wednesday's Trading Session

Replay: Jim Cramer on the Markets, Oil, General Electric, Zillow and Micron

Replay: Jim Cramer on the Markets, Oil, General Electric, Zillow and Micron

Pegasystems Founder Explains Why He Has One of the Hottest Tech Stocks Around

Pegasystems Founder Explains Why He Has One of the Hottest Tech Stocks Around