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 Heartland Financial USA, Inc. ( HTLF - Get Report) entered into oversold territory, hitting an RSI reading of 28.5, after changing hands as low as $24.76 per share. By comparison, the current RSI reading of the S&P 500 ETF (SPY) is 42.0. A bullish investor could look at HTLF's 28.5 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 HTLF shares: Looking at the chart above, HTLF's low point in its 52 week range is $22.40 per share, with $30.99 as the 52 week high point — that compares with a last trade of $25.04.
TheStreet’s Fundamentals of Investing Course will teach you the keys to making the right decisions in any market.
TheStreet’s Personal Finance Essentials Course will teach you money management basics and investing strategies to help you avoid major financial pitfalls.
TheStreet Courses offers dedicated classes designed to improve your investing skills, stock market knowledge and money management capabilities.
More from Stocks
Pinterest and Zoom Are Off to the Races, But Now Comes the Tough Part
The two tech unicorns popped on their first day of trading, but the performance of Lyft since its own initial day of trading serves as a cautionary tale.
Disney and the Battle of Fundamental vs. Technical
At the very least, the valuation may be morphing from traditional old school media to a blend of media and tech.
Pinterest vs. Zoom vs. Lyft: Which Tech IPO Should You Choose? -- ICYMI
Zoom is profitable already but has a very lofty valuation, while Pinterest has some clear advantages over Lyft but one big con.
Pinterest Begins Trading at $23.75, 25% Above IPO Price
Shares of Pinterest kick off at $23.75 on the New York Stock Exchange, above below their initial public offering price of $19 a share.