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 Haynes International, Inc. ( HAYN - Get Report) entered into oversold territory, hitting an RSI reading of 29.6, after changing hands as low as $31.96 per share. By comparison, the current RSI reading of the S&P 500 ETF (SPY) is 60.7. A bullish investor could look at HAYN's 29.6 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 HAYN shares: Looking at the chart above, HAYN's low point in its 52 week range is $28.97 per share, with $48.37 as the 52 week high point — that compares with a last trade of $32.28.
More from Stocks
Dull and Random Describe Market Action Ahead of Fed Rate Announcement
Maybe the Federal Reserve will shake things up with its interest rate decision, but the market is not acting like it is expecting much.
Chewy Shares Lower and Analysts Lukewarm After Earnings Report
Three analysts stay neutral on the online pet-care company's stock.
Dow Falls as Investors Focus on Fed's Rates Decision, Sliding Oil Prices
Stocks are lower as investors turned their attention to falling oil prices and the Federal Reserve's interest rates decision later Wednesday.
3 Small Biotechs With Favorable Risk Vs. Reward Profiles
BioDelivery Sciences International, Chiasma Inc. and TherapeticsMD all feature promising treatments.