21Vianet Group is Now Oversold (VNET)

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 21Vianet Group, Inc. ( VNET) entered into oversold territory, hitting an RSI reading of 26.8, after changing hands as low as $4.20 per share. By comparison, the current RSI reading of the S&P 500 ETF (SPY) is 63.7. A bullish investor could look at VNET's 26.8 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 VNET shares:

START SLIDESHOW:
Find out what 9 other oversold stocks you need to know about »

21Vianet Group, Inc. 1 Year Performance Chart

Looking at the chart above, VNET's low point in its 52 week range is $4.18 per share, with $11.09 as the 52 week high point — that compares with a last trade of $4.18.

More from Stocks

10 Stocks Goldman Sachs Thinks Will Crush the S&P 500's Performance in 2019

10 Stocks Goldman Sachs Thinks Will Crush the S&P 500's Performance in 2019

Dropbox Is the New Defensive Stock to Own With the Market Falling Apart

Dropbox Is the New Defensive Stock to Own With the Market Falling Apart

3 Warning Signs the Stock Market Could Collapse

3 Warning Signs the Stock Market Could Collapse

Dow Tumbles as Trump Ratchets Up China Trade Fight

Dow Tumbles as Trump Ratchets Up China Trade Fight

This Should Be Your Retirement Savings Plan When the Stock Market Crashes

This Should Be Your Retirement Savings Plan When the Stock Market Crashes