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 Tuesday, shares of United Insurance Holdings Corp ( UIHC) entered into oversold territory, hitting an RSI reading of 27.5, after changing hands as low as $14.2605 per share. By comparison, the current RSI reading of the S&P 500 ETF (SPY) is 53.0. A bullish investor could look at UIHC's 27.5 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 UIHC shares: Looking at the chart above, UIHC's low point in its 52 week range is $9.52 per share, with $17.81 as the 52 week high point — that compares with a last trade of $14.47.
HOST // Robert Powell
Retirement Planning Event
More from Stocks
Stocks Finish Higher Amid Concerns About Boeing and China Trade Talks
Stocks finished higher but a decline in Boeing shares limited gains.
Facebook Falls on Downgrade on Concerns More Execs Could Be Leaving
The social network's difficulty removing videos from the mass shooting in New Zealand could lead to other problems for the company, says Needham and Co.
Here's How Tilray Is Doing Ahead of Monday's Earnings Release
Tilray is expected to increase its revenue by more than 50% from the previous quarter.
Biogen Could Go Either Way - Mixed Indicators and Charts
Let's check to see what can be gleaned.