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 CoBiz Financial Inc ( COBZ) entered into oversold territory, hitting an RSI reading of 28.7, after changing hands as low as $10.3103 per share. By comparison, the current RSI reading of the S&P 500 ETF (SPY) is 44.2. A bullish investor could look at COBZ's 28.7 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 $10.3103 per share, with $13.94 as the 52 week high point — that compares with a last trade of $10.39.
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
Investors Should Be Aware of These 'Worrisome Paradigm Shifts' In the Market
Doug Kass wrote about a handful of paradigm shifts in the market that are worrying him in the market.
Nvidia's Self-Driving Strategy Picks Up Speed as It Lands Volvo Partnership
Nvidia on Tuesday announced a massive autonomous driving partnership with Volvo, one of the world's largest trucking manufacturers.
Abercrombie & Fitch Could Bounce in the Short Run, but Don't Get Too Excited
Without a new base pattern I would not anticipate a bounce to go very far or to last very long.