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 ESCO Technologies, Inc. ( ESE - Get Report) entered into oversold territory, hitting an RSI reading of 29.7, after changing hands as low as $33.25 per share. By comparison, the current RSI reading of the S&P 500 ETF (SPY) is 36.7. A bullish investor could look at ESE's 29.7 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 ESE shares: Looking at the chart above, ESE's low point in its 52 week range is $32.18 per share, with $37.39 as the 52 week high point — that compares with a last trade of $33.31. According to the ETF Finder at ETF Channel, ESE makes up 3.71% of the First Trust NASDAQ Clean Edge Smart Grid Infrastructure Index Fund ETF ( GRID) which is trading lower by about 1.4% on the day Friday.
More from Stocks
White House Trade Official Boasts Trade Deal as 'Huge' for Farmers
Peter Navarro tells the White House-friendly 'Fox and Friends' show that the deal will be a 'boom in farm country.'
Market Wrap: GM Addresses New Offer Directly to Striking Workers
The autoworkers strike could cost GM up to $1.5 billion, according to a Credit Suisse note.
U.S.-China 'Mini Deal' Removes Key Distraction for Markets
The "mini-deal' announced Friday drew immidiate scorn, but it removes an important distraction for the markets ahead of earnings season.