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 Wednesday, shares of VBI Vaccines Inc ( VBIV - Get Report) entered into oversold territory, hitting an RSI reading of 29.95, after changing hands as low as $4.53 per share. By comparison, the current RSI reading of the S&P 500 ETF (SPY) is 62.7. A bullish investor could look at VBIV's 29.95 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 VBIV shares: Looking at the chart above, VBIV's low point in its 52 week range is $2.75 per share, with $6.60 as the 52 week high point — that compares with a last trade of $4.62.
More from Stocks
It's Difficult to Get Excited About the Upside Potential for Halliburton
I don't have any inkling to go short HAL this far in the hole. I'll wait for long triggers and sit it out until we get one.
Jim Cramer Warns Don't Get Caught In This Market Bear Trap
Jim Cramer breaks down the market.
The Year Without a Santa Claus: Why 2019 Holiday Sales Could Disappoint
But the reason holiday spend could falter, according to Goldman Sachs, would be for an idiosyncratic reason.