Trina Solar Enters Oversold Territory (TSL)

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 Trina Solar Ltd ( TSL) entered into oversold territory, hitting an RSI reading of 29.9, after changing hands as low as $7.52 per share. By comparison, the current RSI reading of the S&P 500 ETF (SPY) is 36.3. A bullish investor could look at TSL's 29.9 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 TSL shares:

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

Trina Solar Ltd 1 Year Performance Chart

Looking at the chart above, TSL's low point in its 52 week range is $7.52 per share, with $18.77 as the 52 week high point — that compares with a last trade of $8.12.

According to the ETF Finder at ETF Channel, TSL makes up 3.19% of the Solar Energy ETF ( KWT) which is trading up by about 1.8% on the day Wednesday.

More from Stocks

Dow Futures Tank as Trade War Fears Grip Wall Street

Dow Futures Tank as Trade War Fears Grip Wall Street

Why GE's Stock Has Fallen 9% in the Last 30 Days

Why GE's Stock Has Fallen 9% in the Last 30 Days

5 Stock Picks Under $10 for Millennials

5 Stock Picks Under $10 for Millennials

3 Complicated Investing Strategies Millennials Love

3 Complicated Investing Strategies Millennials Love

Tyson Foods CEO: We Aren't Done Making Deals

Tyson Foods CEO: We Aren't Done Making Deals