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 Verso Corp ( VRS - Get Report) entered into oversold territory, hitting an RSI reading of 29.1, after changing hands as low as $5.83 per share. By comparison, the current RSI reading of the S&P 500 ETF (SPY) is 49.3. A bullish investor could look at VRS'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 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 $6.00.
More from Stocks
Brexit: UK Prime Minister Boris Johnson Loses Key Vote to Avoid EU Exit Delay
U.K. lawmakers voted Saturday to delay approval of Prime Minister Boris Johnson's Brexit deal, setting up a potentially unprecedented clash between the country's ruling party and the Supreme Court.
Zuckerberg Set to Defend Libra on Capitol Hill Next Week. Here's What to Expect
While the hearing is focused on Facebook's Libra project, the congressional grilling could also extend to Facebook's acquisitions, antitrust concerns and posture on free speech.