Performance Sports Group Enters Oversold Territory (PSG)

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 Monday, shares of Performance Sports Group Ltd ( PSG) entered into oversold territory, hitting an RSI reading of 29.0, after changing hands as low as $18.38 per share. By comparison, the current RSI reading of the S&P 500 ETF (SPY) is 41.9. A bullish investor could look at PSG's 29.0 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 PSG shares:

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

Performance Sports Group Ltd 1 Year Performance Chart

Looking at the chart above, PSG's low point in its 52 week range is $15.66 per share, with $21.72 as the 52 week high point — that compares with a last trade of $18.40.

If you liked this article you might like

Buyout Shops Consider $600 Million Bids for Bauer Maker in Advance of January Deadline

Why Performance Sports Group (PSG) Stock Is Soaring Today

Performance Sports (PSG) Stock Gaining Despite Delayed Financials, Analysts Downgrade

Performance Sports (PSG) Stock Tanks on Annual Report Filing Delay

Performance Sports on Thin Ice With Activist at the Gate