Oversold Conditions For Inter Parfums (IPAR)

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 Inter Parfums, Inc. ( IPAR) entered into oversold territory, hitting an RSI reading of 27.2, after changing hands as low as $30.5201 per share. By comparison, the current RSI reading of the S&P 500 ETF (SPY) is 33.8. A bullish investor could look at IPAR's 27.2 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 IPAR shares:

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

Inter Parfums, Inc. 1 Year Performance Chart

Looking at the chart above, IPAR's low point in its 52 week range is $20.60 per share, with $38.94 as the 52 week high point — that compares with a last trade of $30.80.

According to the ETF Finder at ETF Channel, IPAR makes up 3.25% of the S&P SmallCap Consumer Staples Portfolio ETF ( PSCC) which is trading relatively unchanged on the day Wednesday.

More from Stocks

PayPal Says It's Testing a Venmo Debit Card

PayPal Says It's Testing a Venmo Debit Card

Dow Tumbles as Trump Calls Off North Korea Summit

Dow Tumbles as Trump Calls Off North Korea Summit

Jim Cramer: Why I am So Bullish on Apple's Services Revenue

Jim Cramer: Why I am So Bullish on Apple's Services Revenue

Jim Cramer: Does Saudi Arabia Think Oil Prices Are Too High?

Jim Cramer: Does Saudi Arabia Think Oil Prices Are Too High?

Video: Jim Cramer on North Korea, Oil Prices, Apple and Carnival Corporation

Video: Jim Cramer on North Korea, Oil Prices, Apple and Carnival Corporation