Nova Gas Transmission Getting Very Oversold (NVA)

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 Nova Gas Transmission Ltd. (TSX: NVA.TO) entered into oversold territory, hitting an RSI reading of 29.2, after changing hands as low as $6.36 per share. By comparison, the current RSI reading of the S&P/TSX Composite Index is 51.0. A bullish investor could look at NVA'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 NVA shares:

START SLIDESHOW:
Click here to find out which 9 other oversold Canadian stocks you need to know about »

Nova Gas Transmission Ltd. 1 Year Performance Chart

Looking at the chart above, NVA's low point in its 52 week range is $4.48 per share, with $8.40 as the 52 week high point — that compares with a last trade of $6.46.

null

More from Stocks

Video: When Planning for Retirement, Don't Underestimate Your Life Span

Video: When Planning for Retirement, Don't Underestimate Your Life Span

Micron Shares Pop After-Hours as Chipmaker Announces $10 Billion Stock Buyback

Micron Shares Pop After-Hours as Chipmaker Announces $10 Billion Stock Buyback

Video: Here's What May Come Next for Theranos Founder and CEO Elizabeth Holmes

Video: Here's What May Come Next for Theranos Founder and CEO Elizabeth Holmes

Dow Leads Major Indices With Triple-Digit Rally

Dow Leads Major Indices With Triple-Digit Rally

Micron CEO: Internet of Things and Data Economy Will Drive Company's Growth

Micron CEO: Internet of Things and Data Economy Will Drive Company's Growth