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 HC2 Holdings Inc ( HCHC) entered into oversold territory, hitting an RSI reading of 29.4, after changing hands as low as $5.885 per share. By comparison, the current RSI reading of the S&P 500 ETF (SPY) is 45.2. A bullish investor could look at HCHC'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 HCHC shares: Looking at the chart above, HCHC's low point in its 52 week range is $5.20 per share, with $13.28 as the 52 week high point — that compares with a last trade of $5.94.
More from Stocks
Textron Hits Turbulence After Tweaking Outlook, Cutting Cash-Flow Estimate
Textron tops analysts' earnings expectations for the third quarter.
Kohl's Teams Up With Facebook to Highlight Beauty Products
Starting in 2020, Kohl's will enlist Facebook to find trending brands in the beauty and wellness category to highlight on the retail giant's Beauty Checkout platform, which the chain launched in October.
Red Flags You Should Binge Watch From Netflix Earnings
Netflix investors were enthused with the earnings, but should they be?
KeyCorp Shares Higher After Third-Quarter Adjusted Profit Beats Estimates
The latest earnings from continuing operations were 48 cents, excluding a dime a share related to a previously disclosed loss due to fraud. FactSet's consensus was 45 cents.