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 Lexicon Pharmaceuticals, Inc. ( LXRX - Get Report) entered into oversold territory, hitting an RSI reading of 29.5, after changing hands as low as $8.01 per share. By comparison, the current RSI reading of the S&P 500 ETF (SPY) is 45.1. A bullish investor could look at LXRX's 29.5 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 LXRX shares: Looking at the chart above, LXRX's low point in its 52 week range is $8.01 per share, with $18 as the 52 week high point — that compares with a last trade of $8.32.
More from Stocks
The Year Without a Santa Claus: Why 2019 Holiday Sales Could Disappoint
But the reason holiday spend could falter, according to Goldman Sachs, would be for an idiosyncratic reason.
Let's Tease a Few More Triple-Net Candidates, Shall We?
Luxury wine producer Crimson Wine Group is among them, as are a handful of manufacturers.
Kimberly-Clark Is Poised to Break Out From This Rare Chart Pattern
KMB is set to report quarterly results on Tuesday.
Let's Talk Stocks: Jim Cramer on Salesforce, Halliburton, Uber and Peloton
Jim Cramer weighs in on Halliburton's quarter, the analyst actions surrounding Peloton and Uber's lock-up expiration.