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 Immersion Corp ( IMMR - Get Report) entered into oversold territory, hitting an RSI reading of 22.3, after changing hands as low as $6.60 per share. By comparison, the current RSI reading of the S&P 500 ETF (SPY) is 41.4. A bullish investor could look at IMMR's 22.3 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 IMMR shares: Looking at the chart above, IMMR's low point in its 52 week range is $6.60 per share, with $14.45 as the 52 week high point — that compares with a last trade of $6.63.
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
Slack's Direct Listing Day: A Look Behind the Scenes
Slack goes public at the New York Stock Exchange via a direct listing, Here's a behind-the-scene look of the company's big day.
S&P 500 Sets All-Time Record High as Fed Signals Interest Rate Cuts
The S&P 500 sets an all-time high Thursday as investors are spurred on by signals of lower interest rates from the Federal Reserve.
Did Jerome Powell Avoid a Trump Tweet? Jim Cramer on the Fed, Oracle and Slack
Jim Cramer tackles the Fed's decision to maintain interest rates, Oracle's earnings and Slack's direct listing.
Deutsche Bank Slumps Following NYT Report of U.S. Money Laundering Probe
Deutsche Bank shares traded lower in Frankfurt following a report from The New York Times that suggests the troubled German lender is facing a U.S. money laundering probe.
Sell Homebuilder Stocks on a Stagnant Housing Market
Sell D.R. Horton, KB Home, Lennar, PulteGroup and Toll Brothers as these stocks are in bull market territory in a stalled housing market.