Bio-Reference Laboratories Getting Very Oversold (BRLI)

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 Bio-Reference Laboratories, Inc. ( BRLI) entered into oversold territory, hitting an RSI reading of 28.6, after changing hands as low as $25.86 per share. By comparison, the current RSI reading of the S&P 500 ETF (SPY) is 58.5. A bullish investor could look at BRLI's 28.6 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 BRLI shares:

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

Bio-Reference Laboratories, Inc. 1 Year Performance Chart

Looking at the chart above, BRLI's low point in its 52 week range is $23.36 per share, with $32.86 as the 52 week high point — that compares with a last trade of $26.00.

According to the ETF Finder at ETF Channel, BRLI makes up 1.90% of the SPDR S&PHealth Care Services ETF ( XHS) which is trading higher by about 0.3% on the day Wednesday.
null

If you liked this article you might like

Cramer -- Shun Sears, Delta; Nike Beats Under Armour (Unless Curry Finds His Shot)

Cramer -- Shun Sears, Delta; Nike Beats Under Armour (Unless Curry Finds His Shot)

Cramer: Strong Dollar Means Own Stocks Like UnitedHealth, Humana

Cramer: Strong Dollar Means Own Stocks Like UnitedHealth, Humana

Perilous Reversal Stock: Bio-Reference Laboratories (BRLI)

Perilous Reversal Stock: Bio-Reference Laboratories (BRLI)

Bio-Reference Labs (BRLI) Stock Gains on Acquisition Despite Earnings Miss

Bio-Reference Labs (BRLI) Stock Gains on Acquisition Despite Earnings Miss

Change at the Top for Two Banks; High Hopes for Cisco

Change at the Top for Two Banks; High Hopes for Cisco