CUI Global Becomes Oversold (CUI)

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 Thursday, shares of CUI Global Inc ( CUI) entered into oversold territory, hitting an RSI reading of 29.8, after changing hands as low as $8.10 per share. By comparison, the current RSI reading of the S&P 500 ETF (SPY) is 53.3. A bullish investor could look at CUI'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 CUI shares:

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

CUI Global Inc 1 Year Performance Chart

Looking at the chart above, CUI's low point in its 52 week range is $5.00 per share, with $11.34 as the 52 week high point — that compares with a last trade of $8.21.

More from Stocks

Johnson & Johnson Shares Tumble After Report It Knew of Asbestos in Baby Powder

Johnson & Johnson Shares Tumble After Report It Knew of Asbestos in Baby Powder

Dow Falls Sharply as Weak China Data Worries Wall Street

Dow Falls Sharply as Weak China Data Worries Wall Street

China's Rapid Property Slowdown Is an Opportunity for Investors

China's Rapid Property Slowdown Is an Opportunity for Investors

Here's a Handful of Small Biotechs Where Insiders Are Buying

Here's a Handful of Small Biotechs Where Insiders Are Buying

Walgreens Slides on Downgrade From Goldman Sachs

Walgreens Slides on Downgrade From Goldman Sachs