Oversold Conditions For Park Electrochemical (PKE)

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 Friday, shares of Park Electrochemical Corp. ( PKE) entered into oversold territory, hitting an RSI reading of 28.2, after changing hands as low as $27.56 per share. By comparison, the current RSI reading of the S&P 500 ETF (SPY) is 63.8. A bullish investor could look at PKE's 28.2 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 PKE shares:

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

Park Electrochemical Corp. 1 Year Performance Chart

Looking at the chart above, PKE's low point in its 52 week range is $24.03 per share, with $32.46 as the 52 week high point — that compares with a last trade of $27.84.

More from Stocks

Stocks Edge Higher On Dovish ECB; GE Jumps on JPMorgan Upgrade

Stocks Edge Higher On Dovish ECB; GE Jumps on JPMorgan Upgrade

General Electric Shares Surge After Rare JPMorgan Upgrade

General Electric Shares Surge After Rare JPMorgan Upgrade

Ciena Jumps After Earnings Blow Out Estimates

Ciena Jumps After Earnings Blow Out Estimates

4 Big Roadblocks to a Better Market

4 Big Roadblocks to a Better Market

ECB Ends Bond Buying Program; Plans 'Extended' Reinvestment Period

ECB Ends Bond Buying Program; Plans 'Extended' Reinvestment Period