Esterline Technologies Becomes Oversold

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 Esterline Technologies Corp ( ESL) entered into oversold territory, hitting an RSI reading of 15.7, after changing hands as low as $92.50 per share. By comparison, the current RSI reading of the S&P 500 ETF (SPY) is 45.4. A bullish investor could look at ESL's 15.7 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 ESL shares:

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

Esterline Technologies Corp 1 Year Performance Chart

Looking at the chart above, ESL's low point in its 52 week range is $92.50 per share, with $122.52 as the 52 week high point — that compares with a last trade of $93.05.

According to the ETF Finder at ETF Channel, ESL makes up 3.16% of the SPDR S&P Aerospace & Defense ETF ( XAR) which is trading lower by about 0.7% on the day Friday.

More from Stocks

Video: Here's What May Come Next for Theranos Founder and CEO Elizabeth Holmes

Video: Here's What May Come Next for Theranos Founder and CEO Elizabeth Holmes

Dow Leads Major Indices With Triple-Digit Rally

Dow Leads Major Indices With Triple-Digit Rally

Micron CEO: Internet of Things and Data Economy Will Drive Company's Growth

Micron CEO: Internet of Things and Data Economy Will Drive Company's Growth

Tesla Model 3 Delivery Time Falls, but Will It Help the Stock?

Tesla Model 3 Delivery Time Falls, but Will It Help the Stock?

Baidu Stock Plummets After COO Qi Lu Resignation

Baidu Stock Plummets After COO Qi Lu Resignation