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 Daktronics Inc. ( DAKT - Get Report) entered into oversold territory, hitting an RSI reading of 29.8, after changing hands as low as $8.59 per share. By comparison, the current RSI reading of the S&P 500 ETF (SPY) is 45.9. A bullish investor could look at DAKT'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 DAKT shares: Looking at the chart above, DAKT's low point in its 52 week range is $5.92 per share, with $10.28 as the 52 week high point — that compares with a last trade of $8.60.
More from Stocks
Reading Tea Leaves, Earnings Kick In, and Sizing Up the Military: Market Recon
Here are defense companies to watch as the U.S. responds to offensive threats posed by China and Russia.
Equifax, Whirlpool, 'The Lion King,' China's STAR Market: 5 Things You Must Know
U.S. stock futures rise as earnings season ramps up in a week heavy with reports from U.S. tech giants; Earnings reports are expected Monday from Whirlpool and Halliburton; Equifax agrees to pay up to $700 million to settle privacy claims stemming from a 2017 data breach; Walt Disney's 'The Lion King' grosses $185 million over its opening weekend in North America.
The Reaction to Earnings Will Tell the Story While We Await the Fed
We have some minor strength to start the day but earnings reports this week will be critical.