Customers Bancorp Incorporated Enters Oversold Territory (CUBI)

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 Customers Bancorp Incorporated ( CUBI) entered into oversold territory, hitting an RSI reading of 29.7, after changing hands as low as $16.01 per share. By comparison, the current RSI reading of the S&P 500 ETF (SPY) is 49.6. A bullish investor could look at CUBI's 29.7 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 CUBI shares:

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

Customers Bancorp Incorporated 1 Year Performance Chart

Looking at the chart above, CUBI's low point in its 52 week range is $11.02 per share, with $18.50 as the 52 week high point — that compares with a last trade of $16.11.

null

If you liked this article you might like

Technology Is The Cure for Bank Stocks Says Customers CEO

Technology Is The Cure for Bank Stocks Says Customers CEO

Bank Stocks Are Down, but Mobile Banking May Bring a Boost

Bank Stocks Are Down, but Mobile Banking May Bring a Boost

8 Must-Own Stocks to Complete Your 'Sweet 16' Portfolio

8 Must-Own Stocks to Complete Your 'Sweet 16' Portfolio

Insider Trading Alert - ALKS, CUBI And WLFC Traded By Insiders

Insider Trading Alert - ALKS, CUBI And WLFC Traded By Insiders

3 Financial Stocks to Watch

3 Financial Stocks to Watch