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 Monday, shares of First Cash Financial Services Inc ( FCFS - Get Report) entered into oversold territory, hitting an RSI reading of 28.1, after changing hands as low as $55.186 per share. By comparison, the current RSI reading of the S&P 500 ETF (SPY) is 36.5. A bullish investor could look at FCFS's 28.1 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 FCFS shares: Looking at the chart above, FCFS's low point in its 52 week range is $47.56 per share, with $64.06 as the 52 week high point — that compares with a last trade of $55.52. According to the ETF Finder at ETF Channel, FCFS makes up 1.83% of the Latin America Small-Cap Index ETF ( LATM) which is trading lower by about 1.1% on the day Monday.
More from Stocks
Sarepta Craters After FDA Rejection of Muscular Dystrophy Drug
In its rejection of golodirsen, Sarepta's second treatment for Duchenne muscular dystrophy, the FDA cites concerns over infection risk "related to intravenous infusion ports and renal toxicity," the company said in a statement.
Watch These Huawei-Exposed Chips Stocks as White House Gives Extension to Huawei
Don't look at Nvidia and AMD. Look at these four instead.
Baidu Stock Continues Bull Run as Trade Optimism, Strong Earnings Spark Surge
The Chinese tech giant is charging hard to close August, adding hope for bulls betting on an inflection point.
Jim Cramer: Hail to Estee Lauder, the New England Patriots of Retail
Under CEO Fabrizio Freda, the cosmetics giant takes risks and then does the blocking and tackling needed to win in a challenging retail environment.