Oversold Conditions For Pactera Tech International Limited A (PACT)

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 Pactera Tech International Limited A ( PACT) entered into oversold territory, hitting an RSI reading of 29.2, after changing hands as low as $6.49 per share. By comparison, the current RSI reading of the S&P 500 ETF (SPY) is 37.7. A bullish investor could look at PACT's 29.2 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 PACT shares:

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

Pactera Tech International Limited A 1 Year Performance Chart

Looking at the chart above, PACT's low point in its 52 week range is $4.95 per share, with $8.69 as the 52 week high point — that compares with a last trade of $6.50.

null

More from Stocks

Jim Cramer Reacts to Thursday's Stock Market Rebound

Jim Cramer Reacts to Thursday's Stock Market Rebound

Why One Strategist Is More Worried About the Strong Dollar Than Turkey's Economy

Why One Strategist Is More Worried About the Strong Dollar Than Turkey's Economy

Stanley Black & Decker CEO: Taking Craftsman From Sad Shape to Made in America

Stanley Black & Decker CEO: Taking Craftsman From Sad Shape to Made in America

Dow Powers Higher as Walmart Surges, U.S. and China to Resume Trade Talks

Dow Powers Higher as Walmart Surges, U.S. and China to Resume Trade Talks

3 Ways to Trade Nvidia on Earnings

3 Ways to Trade Nvidia on Earnings