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 Monday, shares of Manitowoc Company Inc ( MTW - Get Report) entered into oversold territory, hitting an RSI reading of 29.4, after changing hands as low as $5.18 per share. By comparison, the current RSI reading of the S&P 500 ETF (SPY) is 31.8. A bullish investor could look at MTW'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 MTW shares: Looking at the chart above, MTW's low point in its 52 week range is $2.48 per share, with $6.15 as the 52 week high point — that compares with a last trade of $5.24. According to the ETF Finder at ETF Channel, MTW makes up 2.53% of the PowerShares Dynamic Building & Construction Portfolio ETF ( PKB) which is trading relatively unchanged on the day Monday.
More from Stocks
Roku Slides Again, This Time on Analyst Sell Recommendation
Shares of Roku resume their decline after Pivotal Research Group initiates coverage on the company with a sell recommendation.
URI Gets Big Lift After Analyst Upgrade of Construction Equipment Renter
Goldman analyst Jerry Revich raises his price target for United Rentals to $165 a share, up from $128 previously, with inventory in the construction rental equipment sector showing signs of stabilization.
How to Trade Apple Stock Now Amid the Overflowing 'Analysis'
Beware of broad internet search trends for the iPhone 11.