Northern Blizzard Resources Becomes Oversold (NBZ)

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 Northern Blizzard Resources Incorporated (TSX: NBZ.TO) entered into oversold territory, hitting an RSI reading of 29.7, after changing hands as low as $7.53 per share. By comparison, the current RSI reading of the S&P/TSX Composite Index is 39.1. A bullish investor could look at NBZ'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 NBZ shares:

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

Northern Blizzard Resources Incorporated 1 Year Performance Chart

Looking at the chart above, NBZ's low point in its 52 week range is $6.86 per share, with $19.00 as the 52 week high point — that compares with a last trade of $7.53.

More from Stocks

3 Hot Reads From TheStreet's Top Premium Columnists

3 Hot Reads From TheStreet's Top Premium Columnists

P&G Exec: The Entire Board Was Supportive of Our $4.2 Billion Deal

P&G Exec: The Entire Board Was Supportive of Our $4.2 Billion Deal

Dow Falls, S&P 500 Trades Lower as P&G and Apple Slump

Dow Falls, S&P 500 Trades Lower as P&G and Apple Slump

Will Tesla Stock Tumble 33% to $195?

Will Tesla Stock Tumble 33% to $195?

Tesla Is Crowdsourcing its Newest AI Features

Tesla Is Crowdsourcing its Newest AI Features