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 Newpark Resources, Inc. ( NR - Get Report) entered into oversold territory, hitting an RSI reading of 29.4, after changing hands as low as $7.45 per share. By comparison, the current RSI reading of the S&P 500 ETF (SPY) is 30.8. A bullish investor could look at NR's 29.4 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 NR shares: Looking at the chart above, NR's low point in its 52 week range is $6.40 per share, with $10.20 as the 52 week high point — that compares with a last trade of $7.95. According to the ETF Finder at ETF Channel, NR makes up 2.53% of the PowerShares Dynamic Oil & Gas Services Portfolio ETF ( PXJ) which is trading lower by about 1.7% on the day Friday.
More from Stocks
Apple Arcade Feels a Bit Like Streaming Services in Their Early Days
Apple's game-subscription service doesn't have many big-budget titles for now. But it's priced aggressively, has some quality titles and comes without ads or in-game purchases.
Here's Why Apple's TV+ Could Be a Winner -- It's Playing the Long Game
Apple's aggressive $4.99 price point and one-year free trial mean that TV+ is virtually guaranteed to be in the streaming rotation for many cord-cutters in the short-term, and buys it time to iterate in the long term.