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 Omega Healthcare Investors, Inc. ( OHI - Get Report) entered into oversold territory, hitting an RSI reading of 29.5, after changing hands as low as $37.83 per share. By comparison, the current RSI reading of the S&P 500 ETF (SPY) is 51.6. A bullish investor could look at OHI's 29.5 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 OHI shares: Looking at the chart above, OHI's low point in its 52 week range is $31.65 per share, with $45.46 as the 52 week high point — that compares with a last trade of $37.78. According to the ETF Finder at ETF Channel, OHI makes up 6.16% of the PowerShares DWA Financial Momentum Portfolio ETF ( PFI) which is trading lower by about 1.1% on the day Friday.
More from Stocks
Nike to Investigate Oregon Project Following NYT, Sports Illustrated Reports
Nike shut down its Nike Oregon Project in October after a runner reported the program having a toxic culture.
'Ridiculous' Market Hits 28,000: Fight the Trade Deal at Your Own Risk
What is most notable about sentiment is that there isn't much cheering.
Dow Ends Above 28,000; Stocks at Records on Trade-Deal Hopes
The three major U.S. stock indexes closed at record highs Friday following bullish comments on U.S.-China trade talks from a key White House adviser.
UnitedHealth Shares Jump After Warren's More Moderate Medicare for All Plan
Senator Elizabeth Warren's recently released her Medicare plan and several analysts noted that it was more moderate and favorable to health care insurers than expected.
Apple Sees a Big Price Target Raise, But There's One 'X' Factor
Apple's fundamentals are looking better every few weeks, but the trade war is unresolved. And it threatens those positive trending fundamentals.