CSI Compressco Enters Oversold Territory (CCLP)

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 CSI Compressco LP ( CCLP) entered into oversold territory, hitting an RSI reading of 27.8, after changing hands as low as $18.00 per share. By comparison, the current RSI reading of the S&P 500 ETF (SPY) is 52.4. A bullish investor could look at CCLP's 27.8 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 CCLP shares:

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

CSI Compressco LP 1 Year Performance Chart

Looking at the chart above, CCLP's low point in its 52 week range is $12.70 per share, with $28.05 as the 52 week high point — that compares with a last trade of $18.00.

According to the ETF Finder at ETF Channel, CCLP makes up 3.86% of the Zacks MLP High Income Shares ETF ( ZMLP) which is trading lower by about 0.8% on the day Friday.

More from Stocks

18 Top Stocks Hedge Funds Own That Goldman Sachs Thinks Will Keep Outperforming

18 Top Stocks Hedge Funds Own That Goldman Sachs Thinks Will Keep Outperforming

Dow Rises Sharply as U.S.-China Trade Tensions Thaw

Dow Rises Sharply as U.S.-China Trade Tensions Thaw

One Chart on Global Trade Conditions Should Make You Worried About Stocks

One Chart on Global Trade Conditions Should Make You Worried About Stocks

Steel Stocks Are Monday's Biggest Losers From Cooling China Trade Tensions

Steel Stocks Are Monday's Biggest Losers From Cooling China Trade Tensions

Tesla's $78,000 Model 3 Is a Bargain. Here's Why

Tesla's $78,000 Model 3 Is a Bargain. Here's Why