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 1-800 Flowers.com, Inc. ( FLWS - Get Report) entered into oversold territory, hitting an RSI reading of 29.8, after changing hands as low as $8.98 per share. By comparison, the current RSI reading of the S&P 500 ETF (SPY) is 40.6. A bullish investor could look at FLWS'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 FLWS shares: Looking at the chart above, FLWS's low point in its 52 week range is $5.04 per share, with $13.46 as the 52 week high point — that compares with a last trade of $9.12. According to the ETF Finder at ETF Channel, FLWS makes up 1.92% of the iShares Enhanced U.S. Small-Cap ETF ( IESM) which is trading lower by about 1.1% on the day Wednesday.
More from Stocks
This Flat Market Action Is Favorable for Stock Pickers
There still is no compelling reason to bet on a major market correction at this time.
Stocks Slip Though Reports Suggest Some Positive U.S.-China Trade Developments
Stocks are struggling Thursday but reports say China has invited the U.S. to take part fresh face-to-face trade talks and that next month's planned round of U.S. tariffs could be postponed.
Intuit Is Set to Climb Higher: Here's When We Would Buy
Our latest technical analysis and trading strategy for the maker of TurboTax.
Trump Takes Credit for Opening Apple Factory That Has Been Open for 7 Years
Trump toured the Austin plant where Apple's high-end Mac Pro desktop is made, but it's not a new factory nor is it actually even owned by Apple.