Legendary investor Warren Buffett advises to be fearful when many others are greedy, and be greedy when some others are fearful. One particular way we can try to evaluate the degree of dread in a provided stock is by means of a complex assessment indicator named the Relative Toughness 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 beneath 30.
In trading on Wednesday, shares of Cathay Basic Bancorp (Image: CATY) entered into oversold territory, hitting an RSI studying of 29.4, following shifting arms as minimal as $38.98 for every share. By comparison, the latest RSI looking at of the S&P 500 ETF (SPY) is 30.7. A bullish investor could appear at CATY’s 29.4 RSI reading now as a indicator that the current heavy selling is in the course of action of exhausting alone, and begin to glance for entry level possibilities on the invest in facet. The chart down below reveals the 1 calendar year effectiveness of CATY shares:
Searching at the chart higher than, CATY’s minimal level in its 52 week selection is $35.51 for each share, with $48.88 as the 52 7 days large stage — that compares with a previous trade of $39.25.
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