Silicom is Now Oversold (SILC)

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 Monday, shares of Silicom Ltd. ( SILC) entered into oversold territory, hitting an RSI reading of 29.9, after changing hands as low as $63.808 per share. By comparison, the current RSI reading of the S&P 500 ETF (SPY) is 79.2. A bullish investor could look at SILC's 29.9 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 SILC shares:

START SLIDESHOW:
Find out what 9 other oversold stocks you need to know about »

Silicom Ltd. 1 Year Performance Chart

Looking at the chart above, SILC's low point in its 52 week range is $35.02 per share, with $77.95 as the 52 week high point — that compares with a last trade of $64.80.

More from Stocks

Dow Trades Higher, Nasdaq Slides as Chipmakers Fall

Dow Trades Higher, Nasdaq Slides as Chipmakers Fall

Making Sense of the Market: Follow These Trends, Goldman Sachs Says

Making Sense of the Market: Follow These Trends, Goldman Sachs Says

J.C. Penney Bond Market Moves Hint Department Store Retailer Is on Life Support

J.C. Penney Bond Market Moves Hint Department Store Retailer Is on Life Support

Use Extreme Caution as Tesla's Stock Breaks Below This Key Price

Use Extreme Caution as Tesla's Stock Breaks Below This Key Price

Maybe Trump Should Create a One-Day Super Bowl for Corporate Earnings Releases

Maybe Trump Should Create a One-Day Super Bowl for Corporate Earnings Releases