Relative Strength Alert For Gulf Island Fabrication

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 Thursday, shares of Gulf Island Fabrication, Inc. ( GIFI) entered into oversold territory, hitting an RSI reading of 29.3, after changing hands as low as $11.3601 per share. By comparison, the current RSI reading of the S&P 500 ETF (SPY) is 54.5. A bullish investor could look at GIFI's 29.3 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 GIFI shares:

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

Gulf Island Fabrication, Inc. 1 Year Performance Chart

Looking at the chart above, GIFI's low point in its 52 week range is $11.3601 per share, with $23.57 as the 52 week high point — that compares with a last trade of $11.44.

If you liked this article you might like

Gulf Island Fabrication Fabricates Dividend Despite Tough Energy Market

Problematic Governance: The 5 Worst Corporate Boards of 2015: ISS

Gulf Island Fabrication Stock Getting Very Oversold

Gulf Island Fabrication (GIFI) Upgraded From Hold to Buy

Real Money's Tim Melvin on Value Investing: Don’t Fear Volatility