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 Thursday, shares of TrueCar Inc ( TRUE - Get Report) entered into oversold territory, hitting an RSI reading of 29.0, after changing hands as low as $11.56 per share. By comparison, the current RSI reading of the S&P 500 ETF (SPY) is 41.8. A bullish investor could look at TRUE'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 TRUE shares: Looking at the chart above, TRUE's low point in its 52 week range is $11.56 per share, with $25.00 as the 52 week high point — that compares with a last trade of $11.64.
More from Stocks
Splunk Shares Spike on Earnings Beat and Acquisition News
The data analysis software company also raised its full-year revenue guidance.
Stocks End Higher on Target and Lowe's Earnings; Yield Curve Concerns Persist
A brief yield curve inversion did not distract investors from strong earnings from retail giants Target and Lowe's.
Stocks, Treasury Prices Are Way Up in 2019 -- So Where Do Investors Go Now?
Here's how to find stocks that can go higher, and know which funds to pick, as told by a veteran asset allocator.
New York Sues EPA, Disputing Claim That GE Completed Hudson River Cleanup
The NYS Department of Environmental Conservation says the cleanup of the PCBs GE dumped in the New York river isn't complete.