RSI Alert For China Eastern Airlines (CEA)

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 China Eastern Airlines Corp., Ltd. ( CEA) entered into oversold territory, hitting an RSI reading of 28.0, after changing hands as low as $15.03 per share. By comparison, the current RSI reading of the S&P 500 ETF (SPY) is 39.6. A bullish investor could look at CEA's 28.0 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 CEA shares:

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

China Eastern Airlines Corp., Ltd. 1 Year Performance Chart

Looking at the chart above, CEA's low point in its 52 week range is $14.70 per share, with $23.83 as the 52 week high point — that compares with a last trade of $15.04.

null

If you liked this article you might like

Delta Air, Air France, Virgin Atlantic, China Eastern Ink Billion-Dollar Deal

Asia's Flagship Carriers Leak Red Ink

Taking the Budget Airline to China Could Cost You

Stocks to Watch as the World's Largest Migration Begins

Delta Needs Creativity to Avoid IRS Tax Liability Turbulence