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 Northwest Pipe Co. ( NWPX - Get Report) entered into oversold territory, hitting an RSI reading of 29.8, after changing hands as low as $18.39 per share. By comparison, the current RSI reading of the S&P 500 ETF (SPY) is 54.6. A bullish investor could look at NWPX's 29.8 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 NWPX shares: Looking at the chart above, NWPX's low point in its 52 week range is $18.39 per share, with $38.45 as the 52 week high point — that compares with a last trade of $18.49. According to the ETF Finder at ETF Channel, NWPX makes up 3.23% of the First Trust ISE Water Index Fund ETF ( FIW) which is trading lower by about 1.3% on the day Wednesday.
More from Stocks
IPO Oh No? Jim Cramer on the IPO Market, Peloton, Uber and Halliburton
Jim Cramer weighs in on Uber, Peloton, and Halliburton.
What to Watch When Amazon Reports Earnings Thursday
Here are three keys to Amazon earnings October 24.
Coty Shares Surge as Company Mulls Divestiture of Professional Beauty Business
The company said it would use proceeds from any transaction to pay down debt and return cash to holders.
McKesson, Teva and Others Reportedly Settle Ohio Counties Opioid Suit
Four major drug companies have reached a deal with a pair of Ohio Counties over allegations they played a major role in fueling the opioid crisis, The Wall Street Journal reports.