Oversold Conditions For Arbitron (ARB)

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 Monday, shares of Arbitron Inc. ( ARB) entered into oversold territory, hitting an RSI reading of 29.0, after changing hands as low as $45.44 per share. By comparison, the current RSI reading of the S&P 500 ETF (SPY) is 44.8. A bullish investor could look at ARB's 29.0 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 ARB shares:

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

Arbitron Inc. 1 Year Performance Chart

Looking at the chart above, ARB's low point in its 52 week range is $34.56 per share, with $47.20 as the 52 week high point — that compares with a last trade of $45.35.

ARB makes up 1.82% of the iShares Enhanced U.S. Small-Cap ETF ( IESM)

null

More from Stocks

What You Need to Know About Facebook and Europe's New Privacy Rules

What You Need to Know About Facebook and Europe's New Privacy Rules

8 Bold Moves General Motors Could Make to Rev Up Its Battered Stock Price

8 Bold Moves General Motors Could Make to Rev Up Its Battered Stock Price

Is Your Investment Portfolio Prepared for Trade Wars, Inflation and More Trump?

Is Your Investment Portfolio Prepared for Trade Wars, Inflation and More Trump?

GE Is Too Opaque, Too Diversified and Too Poorly Managed: Doug Kass Insider

GE Is Too Opaque, Too Diversified and Too Poorly Managed: Doug Kass Insider

Dow Falls Over 200 Points as Apple's Slump Offsets Gains in General Electric

Dow Falls Over 200 Points as Apple's Slump Offsets Gains in General Electric