Hawaiian Telcom Holdco is Now Oversold (HCOM)

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 Hawaiian Telcom Holdco, Inc. ( HCOM) entered into oversold territory, hitting an RSI reading of 25.1, after changing hands as low as $26.80 per share. By comparison, the current RSI reading of the S&P 500 ETF (SPY) is 47.0. A bullish investor could look at HCOM's 25.1 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 HCOM shares:

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

Hawaiian Telcom Holdco, Inc. 1 Year Performance Chart

Looking at the chart above, HCOM's low point in its 52 week range is $24.75 per share, with $31.50 as the 52 week high point — that compares with a last trade of $26.80.

According to the ETF Finder at ETF Channel, HCOM makes up 1.51% of the Vanguard Telecommunication Services ETF ( VOX) which is trading lower by about 0.7% on the day Monday.

If you liked this article you might like

5 Stocks Insiders Love Right Now

5 Stocks Insiders Love Right Now

5 Stocks Insiders Love Right Now: Vanda, Vicon and More

5 Stocks Insiders Love Right Now: Vanda, Vicon and More

5 Stocks Insiders Can't Stop Buying: Titan International and More

5 Stocks Insiders Can't Stop Buying: Titan International and More

Top Insider Trades: ZINC HCOM FI DLR

Top Insider Trades: ZINC HCOM FI DLR

Top Insider Trades: SBUX NLY HCOM CHSP

Top Insider Trades: SBUX NLY HCOM CHSP