Legendary investor Warren Buffett advises to be fearful when other individuals are greedy, and be greedy when other individuals are fearful. 1 way we can try out to measure the level of fear in a presented inventory is by means of a technical analysis indicator named the Relative Power Index, or RSI, which measures momentum on a scale of zero to 100. A inventory is considered to be oversold if the RSI examining falls under 30.
In investing on Tuesday, shares of CVB Economic Corp (Symbol: CVBF) entered into oversold territory, hitting an RSI reading of 29.7, soon after changing palms as small as $24.99 for every share. By comparison, the latest RSI reading of the S&P 500 ETF (SPY) is 36.1. A bullish trader could search at CVBF’s 29.7 RSI reading through nowadays as a indication that the modern hefty providing is in the procedure of exhausting itself, and start out to search for entry stage opportunities on the get aspect. The chart under exhibits the 1 year overall performance of CVBF shares:
Looking at the chart above, CVBF’s minimal level in its 52 week range is $18.72 per share, with $28.14 as the 52 week significant position — that compares with a final trade of $24.95.
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