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 Sws Group Incorporated ( SWS) entered into oversold territory, hitting an RSI reading of 28.3, after changing hands as low as $7.53 per share. By comparison, the current RSI reading of the S&P 500 ETF (SPY) is 61.2. A bullish investor could look at SWS's 28.3 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 SWS shares:

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

Sws Group Incorporated 1 Year Performance Chart

Looking at the chart above, SWS's low point in its 52 week range is $5.19 per share, with $8.29 as the 52 week high point — that compares with a last trade of $7.61.

More from Stocks

Stocks Hold Gains on US-China Trade Optimism, Strong Start to Q4 Earnings Season

Stocks Hold Gains on US-China Trade Optimism, Strong Start to Q4 Earnings Season

Netflix Will Probably Make Its Earnings Number, Jim Cramer Says

Netflix Will Probably Make Its Earnings Number, Jim Cramer Says

Jim Cramer's Take on Netflix Earnings (and the Other FAANG Stocks)

Jim Cramer's Take on Netflix Earnings (and the Other FAANG Stocks)

Fossil Shares Rise After Company Announces Plan to Sell Tech to Google

Fossil Shares Rise After Company Announces Plan to Sell Tech to Google

Companies Call For Substantive Solution to Trade Tensions

Companies Call For Substantive Solution to Trade Tensions