BioDelivery Sciences International Enters Oversold Territory (BDSI)

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 Tuesday, shares of BioDelivery Sciences International Inc ( BDSI) entered into oversold territory, hitting an RSI reading of 29.97, after changing hands as low as $3.86 per share. By comparison, the current RSI reading of the S&P 500 ETF (SPY) is 42.5. A bullish investor could look at BDSI's 29.97 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 BDSI shares:

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

BioDelivery Sciences International Inc 1 Year Performance Chart

Looking at the chart above, BDSI's low point in its 52 week range is $3.52 per share, with $6.89 as the 52 week high point — that compares with a last trade of $3.96.

According to the ETF Finder at ETF Channel, BDSI makes up 4.17% of the Lux Nanotech Portfolio ETF ( PXN) which is trading lower by about 0.9% on the day Tuesday.

null

More from Stocks

3 Hot Reads From TheStreet's Top Premium Columnists

3 Hot Reads From TheStreet's Top Premium Columnists

Stocks Lose Steam as Yields Hover Near 3% Threshold

Stocks Lose Steam as Yields Hover Near 3% Threshold

How Elon Musk Controls Tesla With Only a Minority Ownership Stake

How Elon Musk Controls Tesla With Only a Minority Ownership Stake

Tesla Is Taking Apple's Ecosystem Model Up a Notch

Tesla Is Taking Apple's Ecosystem Model Up a Notch

After Facebook, Google's Data Practices May Be Under Fire Next

After Facebook, Google's Data Practices May Be Under Fire Next