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 CoBiz Financial Inc ( COBZ) entered into oversold territory, hitting an RSI reading of 29.0, after changing hands as low as $11.99 per share. By comparison, the current RSI reading of the S&P 500 ETF (SPY) is 29.2. A bullish investor could look at COBZ'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 COBZ shares: Looking at the chart above, COBZ's low point in its 52 week range is $10.88 per share, with $13.94 as the 52 week high point — that compares with a last trade of $11.96.
More from Stocks
Dow Rolls on as Target and Lowe's Buoy Stocks and FOMC Minutes Seem Benign
Strong earnings from retail giants Target and Lowe's put investors into a buying mood.
Hawaiian Holdings Stock Slides Amid Stifel Double Downgrade to Sell
Shares of the Hawaiian Airlines parent fell to a four-year low after Stifel downgraded the company to sell from buy and dropped its price target to $20 from $30.
Not Crazy: Add El Pollo Loco to Your Long-Term Shopping List
Good bottoms can take a long time to develop as a company's fortunes reverse.
Don't Get Lost in the Macro Forest, Trading Opportunities Are Out There
It is very easy to overcomplicate trading and investing.