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 Global Ship Lease, Inc. ( GSL - Get Report) entered into oversold territory, hitting an RSI reading of 29.5, after changing hands as low as $4.40 per share. By comparison, the current RSI reading of the S&P 500 ETF (SPY) is 58.1. A bullish investor could look at GSL's 29.5 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 GSL shares: Looking at the chart above, GSL's low point in its 52 week range is $3.75 per share, with $6.41 as the 52 week high point — that compares with a last trade of $4.43.
More from Stocks
Google's Project Nightingale Secretly Gathered Medical Records on People, Report
Google teamed with hospital giant Ascension to secretly gather medical records on millions of patients across the country, the Wall Street Journal reports.
Market of the Week: Interest Rates vs. U.S. Stock Market
A phase one U.S.-China trade deal remains unsigned. Can it be completed by end of year?
Occidental Pete Falls on Report It's Seeking Bids for Some Anadarko Assets
The Houston energy company is seeking bids of as much as $700 million for Anadarko Petroleum properties in Wyoming and Colorado.
Interested in Alibaba? JD Looks Like a More Attractive Partner to Me
Fresh off the excitement of Singles Day, JD is the stock that appears a better play right now, as it's finding niche spots to fill in logistics and housing.