Lumber Liquidators Holdings Enters Oversold Territory (LL)

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 Friday, shares of Lumber Liquidators Holdings Inc ( LL) entered into oversold territory, hitting an RSI reading of 28.2, after changing hands as low as $25.81 per share. By comparison, the current RSI reading of the S&P 500 ETF (SPY) is 48.1. A bullish investor could look at LL's 28.2 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 LL shares:

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

Lumber Liquidators Holdings Inc 1 Year Performance Chart

Looking at the chart above, LL's low point in its 52 week range is $15.25 per share, with $41.33 as the 52 week high point — that compares with a last trade of $25.79.

More from Stocks

Wall Street Futures Jump Higher, Global Markets Rally on US-China Trade Progress

Wall Street Futures Jump Higher, Global Markets Rally on US-China Trade Progress

Google, Trade, Brexit, Under Armour and Delta Air Lines - 5 Things You Must Know

Google, Trade, Brexit, Under Armour and Delta Air Lines - 5 Things You Must Know

Pfizer Slips Lower After JPMorgan Downgrade on Patent Cycle Concerns

Pfizer Slips Lower After JPMorgan Downgrade on Patent Cycle Concerns

Brexit: May Heads to Europe in Last Ditch-Effort to Save Britain's EU Exit Deal

Brexit: May Heads to Europe in Last Ditch-Effort to Save Britain's EU Exit Deal

Facebook Jumps on $9 Billion Buyback Plan, Bullish Note From Deutsche Bank

Facebook Jumps on $9 Billion Buyback Plan, Bullish Note From Deutsche Bank