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 Friday, shares of Bassett Furniture Industries, Inc ( BSET - Get Report) entered into oversold territory, hitting an RSI reading of 28.5, after changing hands as low as $13.41 per share. By comparison, the current RSI reading of the S&P 500 ETF (SPY) is 57.3. A bullish investor could look at BSET's 28.5 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 BSET shares: Looking at the chart above, BSET's low point in its 52 week range is $10.51 per share, with $17.68 as the 52 week high point — that compares with a last trade of $13.59.
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
Markets' Health, Facebook Libra Hearings, Trading Match Group: Market Recon
For those trading the FANG or FAANG names, and especially Facebook, Tuesday sets up as a day bearing exceptional levels of headline risk.
President Trump Says Google Should Be Investigated for Foreign Behavior
The president tweeted early Tuesday that the recent claims of billionaire investor Peter Thiel will be looked at.
VMware Followers Could Find Its Shares Become Cheaper in the Weeks Ahead
Traders and investors were disappointed recently when the IT company did not raise guidance and that weakness does not look like it has run its course.
KeyCorp Shares Slide After Revealing Fraudulent Q3 Activity
KeyCorp shares traded notably lower Tuesday after the lender uncovered fraudulent activity associated within one of its business customers in its current quarter.