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 Owens-Illinois, Inc. ( OI - Get Report) entered into oversold territory, hitting an RSI reading of 29.4, after changing hands as low as $21.94 per share. By comparison, the current RSI reading of the S&P 500 ETF (SPY) is 58.9. A bullish investor could look at OI's 29.4 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 OI shares: Looking at the chart above, OI's low point in its 52 week range is $21.75 per share, with $34.45 as the 52 week high point — that compares with a last trade of $21.98. According to the ETF Finder at ETF Channel, OI makes up 3.38% of the Guggenheim S&P 500 Equal Weight Materials ETF ( RTM) which is trading lower by about 0.9% on the day Friday.
More from Stocks
GM Slumps As United Autoworkers' Union Staff Strike For First Time Since 2007
GM shares were indicated sharply lower Monday after nearly 50,000 members of the United Autoworkers Union went on strike last night in a move that could shutdown production at the biggest U.S. carmaker for several days.
Dow Futures Retreat, Global Stocks Fall After Saudi Oil Attacks, Weak China Data
Global stocks traded notably lower Monday, while oil prices surged the most in more than two decades, as an attack on two key Saudi Arabian oil facilities, as well as the weakest industrial output data from China in many years, hammered equity market sentiment.
Trump: We'll Open Strategic Petroleum Reserve If Needed, After Saudi Attack
Full crude and gas production is expected to take weeks to restore; oil prices soar.