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 Thursday, shares of ChipMOS Technologies Inc ( IMOS - Get Report) entered into oversold territory, hitting an RSI reading of 28.8, after changing hands as low as $17.18 per share. By comparison, the current RSI reading of the S&P 500 ETF (SPY) is 66.4. A bullish investor could look at IMOS's 28.8 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 IMOS shares: Looking at the chart above, IMOS's low point in its 52 week range is $13.94 per share, with $21.99 as the 52 week high point — that compares with a last trade of $17.36.
More from Stocks
CDW Shares Leap as IT Solutions Group Added to S&P 500 Benchmark
CDW shares were indicated sharply higher in pre-market trading Wednesday after the IT solutions group was tabbed to join the S&P 500 next week.
Jim Cramer Takes a Look Ahead to the Federal Reserve Decision
Jim Cramer breaks down what to expect from today's Fed meeting and rates decision.
Federal Reserve, FedEx, Adobe, Facebook and Chewy - 5 Things You Must Know
U.S. stock futures fall modestly in cautious trading as investors focus on the Federal Reserve's interest rates decision expected later Wednesday; FedEx sinks after fiscal first-quarter earnings at the shipping giant miss analysts' forecasts and the company lowers its outlook for fiscal 2020; Adobe falls on weak fourth-quarter guidance; Facebook reportedly is working with Ray-Ban to develop augmented reality glasses.
Dow Futures Drift Lower, Global Markets Cautious Ahead of Fed Rate Decision
Global stocks traded cautiously Wednesday, with investors focused on both the U.S. Federal Reserve's September rate decision later today in Washington and the impact of last weekend's attacks on two key Saudi oil facilities on world crude markets.