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 Tuesday, shares of Vivus, Inc. ( VVUS - Get Report) entered into oversold territory, hitting an RSI reading of 29.8, after changing hands as low as $4.9418 per share. By comparison, the current RSI reading of the S&P 500 ETF (SPY) is 48.9. A bullish investor could look at VVUS's 29.8 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 VVUS shares: Looking at the chart above, VVUS's low point in its 52 week range is $4.9418 per share, with $15.62 as the 52 week high point — that compares with a last trade of $5.03. According to the ETF Finder at ETF Channel, VVUS makes up 3.13% of the SPDR S&P Pharmaceuticals ETF ( XPH) which is trading up by about 0.1% on the day Tuesday.
More from Stocks
Cadence Design Systems Expected to Earn 51 Cents a Share
Cadence Design Systems revenue expected to rise 8.2% to $576.1 million.
Drug Distributors Fall in After-Hours Trading on Failed Opioid Settlement Talks
Trial set to begin Monday in Cleveland in cases of state and local governments against companies that made and distributed oipiods.
Cedar Fair Stockholders Enjoy Riding the 'Golden Cross'
Shares of the amusement park operator still look bullish. Here's how to trade it.