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 VASCO Data Security International Inc ( VDSI) entered into oversold territory, hitting an RSI reading of 29.0, after changing hands as low as $17.55 per share. By comparison, the current RSI reading of the S&P 500 ETF (SPY) is 40.2. A bullish investor could look at VDSI'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 VDSI shares: Looking at the chart above, VDSI's low point in its 52 week range is $14.04 per share, with $35.00 as the 52 week high point — that compares with a last trade of $17.90. According to the ETF Finder at ETF Channel, VDSI makes up 2.17% of the First Trust NASDAQ CEA Cybersecurity ETF ( CIBR) which is trading lower by about 3.1% on the day Thursday.
More from Stocks
Salesforce Puts Data, Acquisitions Front and Center at Dreamforce Keynote
Salesforce co-CEO Marc Benioff put the spotlight on recently acquired Tableau and Mulesoft in detailing the company's vision in the next year and beyond.
DoorDash Considers Direct Listing Instead of Traditional IPO - Report
A direct listing would avoid some of the scrutiny that comes with a publicized IPO, but the company would miss out on the money raised by issuing new shares.
Nasdaq Closes at Record High, Stocks Mixed Over Home Depot, Trump Trade Threat
The Nasdaq closes at another record high Tuesday, while the Dow and S&P 500 slip on disappointing results from Home Depot and ongoing concerns about a U.S.-China trade agreement.
AMD Shares Higher for Ninth Straight Day; Chipmaker Unveils New CPU Deals
Semiconductor producer unveils new supercomputer, server and cloud computing deals for its latest server CPU line.