Oversold Conditions For Microsemi (MSCC)

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 Microsemi Corp. ( MSCC) entered into oversold territory, hitting an RSI reading of 29.0, after changing hands as low as $23.919 per share. By comparison, the current RSI reading of the S&P 500 ETF (SPY) is 52.3. A bullish investor could look at MSCC'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 MSCC shares:

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

Microsemi Corp. 1 Year Performance Chart

Looking at the chart above, MSCC's low point in its 52 week range is $17.12 per share, with $26.72 as the 52 week high point — that compares with a last trade of $24.21.

According to the ETF Finder at ETF Channel, MSCC makes up 2.02% of the SPDR S&P Semiconductor ETF ( XSD) which is trading lower by about 0.2% on the day Thursday.

null

More from Stocks

Companies Already Affected By Trump's Global Trade War

Companies Already Affected By Trump's Global Trade War

Here's What Wall Street Is Watching Monday as Stocks Nosedive

Here's What Wall Street Is Watching Monday as Stocks Nosedive

Our Columnists Take Your Questions on What Stocks to Buy Here

Our Columnists Take Your Questions on What Stocks to Buy Here

Dow Falls Sharply, Nasdaq Sinks as Wall Street Weighs Trump's New Trade Threats

Dow Falls Sharply, Nasdaq Sinks as Wall Street Weighs Trump's New Trade Threats

This Will Be the Ultimate Buy (or Sell) Signal for Stocks

This Will Be the Ultimate Buy (or Sell) Signal for Stocks