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 Monday, shares of Leju Holdings Ltd ( LEJU - Get Report) entered into oversold territory, hitting an RSI reading of 29.9, after changing hands as low as $4.72 per share. By comparison, the current RSI reading of the S&P 500 ETF (SPY) is 43.4. A bullish investor could look at LEJU's 29.9 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 LEJU shares: Looking at the chart above, LEJU's low point in its 52 week range is $4.38 per share, with $16.18 as the 52 week high point — that compares with a last trade of $4.78.
TheStreet’s Fundamentals of Investing Course will teach you the keys to making the right decisions in any market.
TheStreet’s Personal Finance Essentials Course will teach you money management basics and investing strategies to help you avoid major financial pitfalls.
TheStreet Courses offers dedicated classes designed to improve your investing skills, stock market knowledge and money management capabilities.
More from Stocks
Stocks Jump as ECB's Draghi Hints at Stimulus, Trump to Meet With China's Xi
Stocks are rising on Tuesday as investors react to comments from European Central Bank President Mario Draghi that suggest further monetary easing hours ahead of the start of the Fed meeting.
Snap Gains on Analysts Upgrades as Messaging App Maker Wins Back Wall Street
Snap shares traded sharply higher Tuesday following a pair of analyst upgrades for the instant messaging app maker as it wins back faith from Wall Street amid improving revenues and longer user engagement.
Facebook Extends Gains as Libra Cryptocurrency Details Revealed in White Paper
Facebook extend gains for a fourth consecutive session Tuesday, taking their one-week gain past 10.6%, as investors react to details of its 'Libra' cryptocurrency plans revealed by its backers in a published white paper.