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 Verso Corp ( VRS - Get Report) entered into oversold territory, hitting an RSI reading of 29.8, after changing hands as low as $6.63 per share. By comparison, the current RSI reading of the S&P 500 ETF (SPY) is 49.5. A bullish investor could look at VRS's 29.8 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 VRS shares: Looking at the chart above, VRS's low point in its 52 week range is $5.55 per share, with $13.60 as the 52 week high point — that compares with a last trade of $6.63.
More from Stocks
Top 5 Stock Winners in the Dow Jones Industrial Average This Week
Here are the top 5 winning stocks in the Dow Jones Industrial Average from this week ending on Nov. 22.
Stocks End Higher as Trump Says Trade Deal with China 'Potentially Very Close'
Stocks finish higher Friday as President Donald Trump says a trade agreement between the U.S. and China, the world's two largest economies, is "potentially very close."
Stifel and UBS Both See Stocks Up 5% Next Year -- but the Estimates Differ
Stifel's Bannister likes cyclicals. UBS's team likes divs.