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 Premiere Global Services Inc ( PGI) entered into oversold territory, hitting an RSI reading of 29.2, after changing hands as low as $8.80 per share. By comparison, the current RSI reading of the S&P 500 ETF (SPY) is 57.3. A bullish investor could look at PGI'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 PGI shares: Looking at the chart above, PGI's low point in its 52 week range is $7.92 per share, with $12.74 as the 52 week high point — that compares with a last trade of $8.84. According to the ETF Finder at ETF Channel, PGI makes up 1.07% of the Vanguard Telecommunication Services ETF ( VOX) which is trading lower by about 0.5% on the day Friday.
HOST // Robert Powell
Retirement Planning Event
More from Stocks
Dow Ends Slightly Higher Despite Slowing Global Growth Worries
The Dow Jones Industrial Average trades lower over fears on Wall Street of slowing global growth.
Yield-Curve Inversion Isn't Threatening Stocks Yet -- Here's When It Will
Why you shouldn't care about the yield-curve inversion now, but should care about it later.
Jim Cramer: Blockbuster Ideas That I Know Would Move Apple's Needle
What would the people who help determine AAPL's stock price really want?
Nike Shares Active as Extortion Charges Brought Against Lawyer Michael Avenatti
Nike shares are active Monday after the U.S. Justice Department said it would charge controversial attorney Michael Avenatti with charges of extortion just minutes after he tweeted about exposing a "major high school basketball scandal" linked to the world's biggest sportswear company.