Relative Strength Alert For Web.com Group

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 Web.com Group, Inc. ( WWWW) entered into oversold territory, hitting an RSI reading of 28.5, after changing hands as low as $14.89 per share. By comparison, the current RSI reading of the S&P 500 ETF (SPY) is 62.6. A bullish investor could look at WWWW's 28.5 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 WWWW shares:

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

Web.com Group, Inc. 1 Year Performance Chart

Looking at the chart above, WWWW's low point in its 52 week range is $14.89 per share, with $37.72 as the 52 week high point — that compares with a last trade of $15.73.

More from Stocks

AMD, Micron Shares Follow Nvidia Lower

AMD, Micron Shares Follow Nvidia Lower

It's National Fast Food Day -- Here's Where to Find Deals

It's National Fast Food Day -- Here's Where to Find Deals

Etsy, Other Specialty Retailers Tumble

Etsy, Other Specialty Retailers Tumble

Nvidia Is Still a Growth Stock to Bullish Buyers on Weakness

Nvidia Is Still a Growth Stock to Bullish Buyers on Weakness

Stocks Rally on Dovish Trump Tariff Comments

Stocks Rally on Dovish Trump Tariff Comments