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 Thursday, shares of Acorda Therapeutics Inc ( ACOR - Get Report) entered into oversold territory, hitting an RSI reading of 29.1, after changing hands as low as $20.58 per share. By comparison, the current RSI reading of the S&P 500 ETF (SPY) is 47.6. A bullish investor could look at ACOR's 29.1 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 ACOR shares: Looking at the chart above, ACOR's low point in its 52 week range is $20.58 per share, with $43.63 as the 52 week high point — that compares with a last trade of $20.64. According to the ETF Finder at ETF Channel, ACOR makes up 2.26% of the PowerShares Dynamic Biotechnology & Genome Portfolio ETF ( PBE) which is trading lower by about 3.3% on the day Thursday.
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
What Stocks and Sectors Investors Should Watch During the Second Half of 2019
Curious about stocks or sectors that investors should watch now that we're transitioning into the second half of 2019? Here's what Real Money contributor Stephen Guilfoyle thinks.
Facebook's Mark Zuckerberg Pushes Back on Antitrust Talk
In an interview, Zuckerberg argued that Facebook's size helps, not hinders, progress on security and other issues.
How Investors Should Approach the Trade Talks, the Federal Reserve and Micron
United States Secretary of the Treasury Steven Mnuchin made comments on the trade talks early Wednesday. Mnuchin says that he believes that the U.S. and China were almost 90% of the way through trade talks. Fed chair Jerome Powell spoke about the need for the central bank to remain independent and to not cave to "short-term political interests." And, of course, we have Micron MU, which is Real Money's stock of the day and it also released earnings Tuesday after the bell. The company beat expectations.
Ear to the Ground on UTX-Raytheon: What Needs to Happen for the Deal to Close
Shareholders are skittish about this deal, one analyst said. See why they shouldn't be.
AbbVie Rebounds as Market Warms to Allergan Deal, Botox Potential
AbbVie's deal for Allergan will give it a new revenue stream in Botox, helping offset potential lower revenue from arthritis drug Humira, which is losing patent protection.