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 JA Solar Holdings Co Ltd ( JASO) entered into oversold territory, hitting an RSI reading of 28.0, after changing hands as low as $8.48 per share. By comparison, the current RSI reading of the S&P 500 ETF (SPY) is 37.0. A bullish investor could look at JASO's 28.0 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 JASO shares: Looking at the chart above, JASO's low point in its 52 week range is $6.70 per share, with $10.98 as the 52 week high point — that compares with a last trade of $8.50. According to the ETF Finder at ETF Channel, JASO makes up 2.95% of the Guggenheim Solar ETF ( TAN) which is trading lower by about 5.2% on the day Monday.
More from Stocks
Sonos Resonates With Investors on Raymond James Upgrade to Strong Buy
Digital-home-audio-device maker is well-positioned relative to peers, the firm says.
Domino's Keeps Delivery In-House, Reportedly Avoids Use of Third-Party Apps
Domino's CEO says the profit lost to commissions and risk to customer goodwill make the delivery apps not worthwhile.
Range Resources Shares Energized After Upgrade to Buy at MKM
MKM analyst John Gerdes sees upside potential in the oil-and-gas producer.
Men's Wearhouse Owner Tailored Brands Gives Up Gains After Guidance
The company sells its corporate apparel business to that division's current management team for $62 million.
Jeff Bezos, Tim Cook and Other Top CEOs Vow to Redefine Corporations' Goals
Heads of Amazon, Apple, IBM, JPMorgan Chase and other major firms say they'll shift from a shareholder-first mentality to a more society-centric view.