PDF Solutions Is Now Oversold (PDFS)

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 PDF Solutions Inc. ( PDFS) entered into oversold territory, hitting an RSI reading of 28.6, after changing hands as low as $14.76 per share. By comparison, the current RSI reading of the S&P 500 ETF (SPY) is 51.7. A bullish investor could look at PDFS's 28.6 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 PDFS shares:

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

PDF Solutions Inc. 1 Year Performance Chart

Looking at the chart above, PDFS's low point in its 52 week range is $11.62 per share, with $22.66 as the 52 week high point — that compares with a last trade of $16.10.

According to the ETF Finder at ETF Channel, PDFS makes up 1.25% of the PowerShares DWA NASDAQ Momentum Portfolio ETF ( DWAQ) which is trading lower by about 0.1% on the day Friday.

If you liked this article you might like

Today's Strong And Under The Radar Stock Is PDF Solutions (PDFS)

Today's Strong And Under The Radar Stock Is PDF Solutions (PDFS)

These Small-Cap Growth Stocks Look Ready to Pop

These Small-Cap Growth Stocks Look Ready to Pop

Insider Trading Alert - TJX, CSII And PDFS Traded By Insiders

Insider Trading Alert - TJX, CSII And PDFS Traded By Insiders

PDF Solutions (PDFS) Upgraded From Hold to Buy

PDF Solutions (PDFS) Upgraded From Hold to Buy

Trade-Ideas: PDF Solutions (PDFS) Is Today's Strong On High Relative Volume Stock

Trade-Ideas: PDF Solutions (PDFS) Is Today's Strong On High Relative Volume Stock