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 Village Super Market, Inc. ( VLGEA - Get Report) entered into oversold territory, hitting an RSI reading of 28.1, after changing hands as low as $24.11 per share. By comparison, the current RSI reading of the S&P 500 ETF (SPY) is 53.0. A bullish investor could look at VLGEA's 28.1 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 VLGEA shares: Looking at the chart above, VLGEA's low point in its 52 week range is $24.11 per share, with $39.71 as the 52 week high point — that compares with a last trade of $24.32.
More from Stocks
Free CrowdStreet Webinar: Real Estate Investment Advice for the Slowing Economy
There are moves savvy investors can make in order to maximize opportunities in real estate, according to the panelists in TheStreet's free CrowdStreet webinar - Investing in 2020: Is Commercial Real Estate a Bright Spot Amidst Slowing Growth?
Stocks Hit Record Highs Though Gains Capped by U.S.-China Trade Pessimism
Stocks reach all-time intraday highs though are kept from moving even higher on pessimism about a trade agreement between the U.S. and China.
Salesforce's Dreamforce Event and Investor Day: Top 3 Things to Watch For
The impact of recent big-ticket acquisitions such as Tableau will be an important area of focus this year.
How Investors Should Approach Trump's 'Cordial' Meeting' With Jay Powell
How should investors approach President Trump's surprise meeting with Federal Reserve Chair Jay Powell?
Asset Management vs. Investment Banking: What's the Difference?
Asset management and investment banking may be birds of a feather in some Wall Street regards, but the differences in the two are significant.