|
Featured MNV Articles:
| Oversold Conditions For Lithium Americas (LAC.CA)By Canada Stock Channel Staff, Monday, November 13, 11:43 AM ET
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 Monday, shares of Lithium Americas Corp (TSE:LAC.CA) entered into oversold territory, hitting an RSI reading of 29.0, after changing hands as low as $9.55 per share. By comparison, the current RSI reading of the S&P/TSX Composite Index is 59.2. A bullish investor could look at LAC.CA's 29.0 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 LAC.CA shares:
Looking at the chart above, LAC.CA's low point in its 52 week range is $8.65 per share, with $18.705 as the 52 week high point — that compares with a last trade of $9.59. Find out what 9 other oversold stocks you need to know about » Special Offer: Join the income investing conversation on ValueForum.com with a special Seven Days for Seven Dollars invitation.
This Article's Word Cloud:
Americas
Buffett
Composite
Corp
Days
Dollars
Find
Index
Join
Legendary
Lithium
Looking
Monday
Offer
Relative
Seven
Special
Strength
ValueForum
Warren
about
above
advises
after
analysis
begin
below
bullish
called
changing
chart
compares
comparison
considered
conversation
fearful
greedy
investor
look
others
oversold
point
reading
share
shares
stock
that
week
when
with
|