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 Caesarstone Ltd ( CSTE - Get Report) entered into oversold territory, hitting an RSI reading of 27.2, after changing hands as low as $23.189 per share. By comparison, the current RSI reading of the S&P 500 ETF (SPY) is 64.1. A bullish investor could look at CSTE's 27.2 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 CSTE shares: Looking at the chart above, CSTE's low point in its 52 week range is $23.10 per share, with $44.00 as the 52 week high point — that compares with a last trade of $23.15.
More from Stocks
Trump Calls Debt Ceiling 'Sacred,' Promises It Won't Be Used as Negotiation Chip
President Trump said that the debt ceiling will not be used as a political football.
Microsoft Hits Record High as Cloud Revenues Drive Q4 Earnings Beat
Microsoft shares traded at an all-time high Friday, lifting the world's most valuable company well past $1 trillion, after the tech giant posted stronger-than-expected fourth quarter earnings driven largely by its fast-expanding cloud computing business.
Microsoft's Stellar Quarter Had One Noticeable Weak Spot
The software giant said it expects gaming revenue to decline in its full-year forecast, driven by lower console sales and tough compares related to one third-party title.
How Ford Will Eat Tesla's Lunch in the Next Two Years
A Mustang-inspired electric crossover could challenge Tesla's Model Y, while an electric Ford F-150 could derail Elon Musk's dreams of an electric Tesla pickup truck.