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 Willis Lease Finance Corp. ( WLFC - Get Report) entered into oversold territory, hitting an RSI reading of 28.0, after changing hands as low as $23.65 per share. By comparison, the current RSI reading of the S&P 500 ETF (SPY) is 70.7. A bullish investor could look at WLFC's 28.0 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 WLFC shares: Looking at the chart above, WLFC's low point in its 52 week range is $21.10 per share, with $28.06 as the 52 week high point — that compares with a last trade of $23.65.
More from Stocks
This Is How Much Room Gold and Stocks Have Left Before a Correction
This trader called the summer gold rally, now he is eyeing these price levels.
WeWork's CEO Dumped a Lot of Stock Ahead of its IPO. Red Flag?
WeWork was valued at $47 billion earlier this year, but its heavy losses have also raised eyebrows in the run-up to its expected IPO.
Microsoft, JCI and the UAE: The Internet of Things Blossoms in the Desert
Big glass box buildings have become common across the world's cityscapes. But they can be energy gluttons. Enter Microsoft and Johnson Controls for IoT software, switches and controls in a venture with a UAE recycling and waste-management company.