Relative Strength Alert For RDA Microelectronics

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 Thursday, shares of RDA Microelectronics Inc ( RDA) entered into oversold territory, hitting an RSI reading of 28.8, after changing hands as low as $17.58 per share. By comparison, the current RSI reading of the S&P 500 ETF (SPY) is 64.7. A bullish investor could look at RDA's 28.8 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 RDA shares:

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

RDA Microelectronics Inc 1 Year Performance Chart

Looking at the chart above, RDA's low point in its 52 week range is $9.05 per share, with $18.40 as the 52 week high point — that compares with a last trade of $17.80.

More from Stocks

Google, Trade, Brexit, Under Armour and Delta Air Lines - 5 Things You Must Know

Google, Trade, Brexit, Under Armour and Delta Air Lines - 5 Things You Must Know

Auto Stocks Surge on Report China Preparing to Slash US Import Tariffs

Auto Stocks Surge on Report China Preparing to Slash US Import Tariffs

Jim Cramer: Don't Buy Tech ETFs, Buy Strong Tech Stocks

Jim Cramer: Don't Buy Tech ETFs, Buy Strong Tech Stocks

Abbott Downing Executive on New Years Resolutions for Investors

Abbott Downing Executive on New Years Resolutions for Investors

Wall Street Futures Jump Higher, Global Markets Rally on US-China Trade Progress

Wall Street Futures Jump Higher, Global Markets Rally on US-China Trade Progress