Dream Industrial Real Estate Investment Trust Becomes Oversold (DIR-UN)

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 Dream Industrial Real Estate Investment Trust (TSX: DIR-UN.TO) entered into oversold territory, hitting an RSI reading of 28.5, after changing hands as low as $8.59 per share. By comparison, the current RSI reading of the S&P/TSX Composite Index is 38.3. A bullish investor could look at DIR.UN'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 DIR.UN shares:

START SLIDESHOW:
Click here to find out which 9 other oversold Canadian stocks you need to know about »

Dream Industrial Real Estate Investment Trust 1 Year Performance Chart

Looking at the chart above, DIR.UN's low point in its 52 week range is $7.64 per share, with $9.95 as the 52 week high point — that compares with a last trade of $8.64.

More from Stocks

Danica Patrick's Final Race at 2018 Indianapolis 500: What She Thinks About Cars

Danica Patrick's Final Race at 2018 Indianapolis 500: What She Thinks About Cars

Why The FANG Stocks' Dominance May Not Be So Bad For The Market

Why The FANG Stocks' Dominance May Not Be So Bad For The Market

At End of May, Investors Signalling They May Stay Away

At End of May, Investors Signalling They May Stay Away

Inside Carnival's Mind Blowing New Horizon Cruise Ship (Video)

Inside Carnival's Mind Blowing New Horizon Cruise Ship (Video)

Neel Kashkari: The Heart of Our Financial System Is More Radioactive Than Ever

Neel Kashkari: The Heart of Our Financial System Is More Radioactive Than Ever