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 Wednesday, shares of SeaChange International Inc. ( SEAC - Get Report) entered into oversold territory, hitting an RSI reading of 29.3, after changing hands as low as $8.47 per share. By comparison, the current RSI reading of the S&P 500 ETF (SPY) is 73.5. A bullish investor could look at SEAC's 29.3 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 SEAC shares: Looking at the chart above, SEAC's low point in its 52 week range is $8.21 per share, with $15.25 as the 52 week high point — that compares with a last trade of $8.48.
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
Snap's Android App Comes into Focus on its First-Quarter Earnings Call
Snap shares were volatile as analysts probed company executives on its much-anticipated Android revamp.