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 Haverty Furniture Cos., Inc. ( HVT - Get Report) entered into oversold territory, hitting an RSI reading of 28.2, after changing hands as low as $23.28 per share. By comparison, the current RSI reading of the S&P 500 ETF (SPY) is 46.6. A bullish investor could look at HVT's 28.2 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 HVT shares: Looking at the chart above, HVT's low point in its 52 week range is $12.63 per share, with $27.85 as the 52 week high point — that compares with a last trade of $23.33. According to the ETF Finder at ETF Channel, HVT makes up 2.54% of the Dynamic Retail Portfolio ETF ( PMR which is trading up by about 0.5% on the day Wednesday.
TheStreet’s Fundamentals of Investing Course will teach you the keys to making the right decisions in any market.
TheStreet’s Personal Finance Essentials Course will teach you money management basics and investing strategies to help you avoid major financial pitfalls.
TheStreet Courses offers dedicated classes designed to improve your investing skills, stock market knowledge and money management capabilities.
More from Stocks
Jim Cramer Unveils His 5 Rules for Trading Stocks During Earnings Season
Jim tells members of his Action Alerts PLUS club for investors what to look for when earnings reports come in.
Freeport-McMoRan Is Switching Into Bull Market Mode
After a rough 2018, Freeport-McMoRan is a 'buy the dips' stock.
Comcast Regains Its Swagger in a Brutal New Era of Streaming
Customers have a love/hate relationship with the cable TV industry because of continuously rising prices and poor customer service. The flip side is that cable TV, as a product, works, and Comcast can exploit that like no other.
Pinterest and Zoom Are Off to the Races, but Now Comes the Tough Part
The two tech unicorns popped on their first day of trading, but the performance of Lyft since its own initial day of trading serves as a cautionary tale.