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 Tuesday, shares of Quality Distribution Inc ( QLTY) entered into oversold territory, hitting an RSI reading of 29.7, after changing hands as low as $9.84 per share. By comparison, the current RSI reading of the S&P 500 ETF (SPY) is 49.8. A bullish investor could look at QLTY'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 QLTY shares: Looking at the chart above, QLTY's low point in its 52 week range is $8.32 per share, with $15.83 as the 52 week high point — that compares with a last trade of $9.87.
HOST // Robert Powell
Retirement Planning Event
More from Stocks
Stocks Steady as Fed Meeting Looms; Latest Brexit Twist Checks Risk Appetite
Global stocks steadied overnight, while the dollar slipped to fresh two-week lows and Treasury yields fell, as investors kept risk appetite in check ahead of the start of today's two-day Fed meeting and amid yet another twist in Britain's two year Brexit drama.
At GDC, Amazon Reveals its Playbook for Dominating Game Development
Anchored by AWS and Twitch, Amazon is pitching an all-in-one toolkit for game developers. Its main rival is Microsoft, which announced a similar offering last week.
Nvidia's GTC Conference: Demand for Computing Power Drives Innovation
Nvidia CEO Jensen Huang talks about the demand for computing power at the company's GTC Conference.