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 Tuesday, shares of Hanger Inc ( HGR) entered into oversold territory, hitting an RSI reading of 29.97, after changing hands as low as $12.33 per share. By comparison, the current RSI reading of the S&P 500 ETF (SPY) is 45.9. A bullish investor could look at HGR's 29.97 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 HGR shares: Looking at the chart above, HGR's low point in its 52 week range is $12.11 per share, with $26.79 as the 52 week high point — that compares with a last trade of $12.49.
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
Total System Services Jumps on Tie-Up Talk With Global Payments
Shares of credit card transaction technology company Total System Services jump on reports it has engaged in preliminary merger talks with electronic payment technology company Global Payments.
Dow Futures Rally From Tech and Trade Rout; Dollar Eases From 2-Year High
Global stocks steadied Friday as investors gingerly returned to risk markets after a bruising week of losses sparked by worries of a prolonged U.S.-China trade war and increasing signals of a slowing world economy.
How a Chinese Restriction on 'Rare Earths' Could Threaten Apple
China is the world's supplier of rare earths. Export restrictions could be bad news for Apple investors.
Facebook Developing 'GlobalCoin' Cryptocurrency for 2020 Launch - Reports
Facebook is set to unveil its own cryptocurrency, according to multiple media reports, in a move that would allow its 2.4 billion users to make online payments across the social media group's platforms.