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 Astoria Financial Corp ( AF) entered into oversold territory, hitting an RSI reading of 27.1, after changing hands as low as $18.61 per share. By comparison, the current RSI reading of the S&P 500 ETF (SPY) is 41.8. A bullish investor could look at AF's 27.1 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 AF shares: Looking at the chart above, AF's low point in its 52 week range is $14.11 per share, with $21.66 as the 52 week high point — that compares with a last trade of $18.82. AF makes up 2.62% of the ProShares Merger ETF ( MRGR)
More from Stocks
Federal Reserve Will Cut Rates - But What Happens Next?
Federal Reserve policymakers are expected to vote in favor of cutting the central bank's benchmark target interest rate by at least a quarter-point when their two-day meeting wraps up on Wednesday, even as the U.S. economy continues to defy gravity amid slowing global growth and a dog's breakfast of geopolitical issues.
Buy or Sell Shopify Stock After Secondary Offering?
Can Shopify stock rally despite announcing a secondary offering? Let's look at the key levels for this high-growth stock now.
Burlington and TJX Shares Higher After Analyst Upgrade; Other Retailers Lower
While tariffs have hit traditional retailers hard, they have provided a big opportunity for Burlington, which has seen market-share gains as shoppers seek out less expensive alternatives, according to UBS.
Stocks Mixed as Wall Street Awaits Fed Decision on Rates, Oil Prices Slump
Stocks are mixed Tuesday as investors proceed with caution as the Federal Reserve's two-day rate-setting meeting kicks off.
ZScaler, CrowdStrike Jump on Joint Partnership Deal
Cloud-based cybersecurity companies ZScaler and CrowdStrike both jump after they announce a partnership that will provide businesses with real-time security protection across their computer networks.