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 Manitowoc Company Inc ( MTW - Get Report) entered into oversold territory, hitting an RSI reading of 28.2, after changing hands as low as $4.60 per share. By comparison, the current RSI reading of the S&P 500 ETF (SPY) is 32.1. A bullish investor could look at MTW's 28.2 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 $4.60. MTW makes up 1.23% of the SPDR SSGA Risk Aware ETF ( RORO)
More from Stocks
Etsy Gains on Analyst Upgrade to Outperform, Price Target Boost
Etsy rises after RBC lifts its rating on the stock to outperform from sector perform, citing the company's free shipping offer as well as more recent advertising push, which it says is helping generate sales.
Apple iPhone 11 Hits Shelves Around The World, Pre-Orders Suggest Solid Demand
Apple offered its latest smartphone for general sale around the world Friday, with analysts betting the new iPhone 11 will be a key sales driver for the tech giant heading into the key holiday season.
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.