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 Oramed Pharmaceuticals Inc ( ORMP - Get Report) entered into oversold territory, hitting an RSI reading of 28.8, after changing hands as low as $8.55 per share. By comparison, the current RSI reading of the S&P 500 ETF (SPY) is 72.4. A bullish investor could look at ORMP'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 ORMP shares: Looking at the chart above, ORMP's low point in its 52 week range is $5.82 per share, with $11.34 as the 52 week high point — that compares with a last trade of $8.58.
More from Stocks
It's Time to Grow More Wary of Growth Expectations
GDP and corporate earnings trends are not favorable and increasingly indicate slowing economies here and abroad.
Midday Wrap: Banking Stocks Take Hit, Home Depot Punished Twice
Shares of Home Depot are down following a Guggenheim downgrade, though the company already warned of the headwinds mentioned in the Guggenheim report.
WeWork Parent Tells Employees It Will IPO by End of This Year: Report
WeWork still plans to go through with its beleaguered IPO by the end of this year, the company said this week.
Match Group Initiated at Buy With a $95 Price Target at Citigroup
Citigroup initiates coverage of the stock with a buy rating and $95 price target.
Federal Reserve Will Cut Rates - But What Happens Next?
Federal Reserve policymakers are expected to vote in favor of cutting the central bank's benchmark target interest rate by at least a quarter-point when their two-day meeting wraps up on Wednesday, even as the U.S. economy continues to defy gravity amid slowing global growth and a dog's breakfast of geopolitical issues.