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 Willis Lease Finance Corp. ( WLFC - Get Report) entered into oversold territory, hitting an RSI reading of 29.5, after changing hands as low as $25.08 per share. By comparison, the current RSI reading of the S&P 500 ETF (SPY) is 67.5. A bullish investor could look at WLFC's 29.5 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 WLFC shares: Looking at the chart above, WLFC's low point in its 52 week range is $21.10 per share, with $28.06 as the 52 week high point — that compares with a last trade of $25.27. According to the ETF Finder at ETF Channel, WLFC makes up 1280.50% of the iShares Russell 2500 ETF ( SMMD) which is trading relatively unchanged on the day Wednesday.
More from Stocks
Ross Stores Tumbles as Discount Retailer Warns of Tariff Impact
Ross executives say looming plans by the Trump administration to slap 10% tariffs on apparel and footwear made in China have forced the chain to update its earnings guidance for the remainder of the year.
Powell's Chance at Redemption, Stunned by Salesforce's Strong Beat: Market Recon
The Fed Chair's address this day will move markets. This we know.