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 JA Solar Holdings Co Ltd ( JASO) entered into oversold territory, hitting an RSI reading of 26.5, after changing hands as low as $6.85 per share. By comparison, the current RSI reading of the S&P 500 ETF (SPY) is 48.0. A bullish investor could look at JASO's 26.5 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 JASO shares: Looking at the chart above, JASO's low point in its 52 week range is $5.03 per share, with $8.48 as the 52 week high point — that compares with a last trade of $6.85. According to the ETF Finder at ETF Channel, JASO makes up 3.04% of the PowerShares WilderHill Clean Energy Portfolio ETF ( PBW) which is trading up by about 0.6% on the day Friday.
HOST // Robert Powell
Retirement Planning Event
More from Stocks
The Stock Pickers Are Producing Some Very Solid Action
The bears will have to go back to hoping and whining about the Fed.
Investors Like Micron Earnings, but Analysts Are Less Impressed
One of the biggest pessimists on the stock, CitiGroup, downgraded Micron from neutral to a sell.
Stocks Rise Despite Fed's Warning on Slowing Economic Growth
Stocks are higher Thursday despite a warning from the Federal Reserve about slowing economic growth.
Plus Cannabis Gummies Get a 'Speculative Buy' Rating With a Delicious Outlook
If Plus cannabis gummies are a big hit, just think how consumers will respond to hemp-derived CBD gummies.