Air Transport Services Group enters oversold territory (ATSG)

THELegendary investor Warren Buffett advises to be fearful when others are greedy and to be greedy when others are afraid. One way we can try to measure the level of fear of a given stock is by using a technical analysis indicator called a Relative Strength Index, or RSI, which measures momentum on a scale from zero to 100. A stock is considered oversold if the RSI reading falls below 30.

During Tuesday’s trading, shares of Air Transport Services Group, Inc. (ticker: ATSG) entered oversold territory, hitting an RSI of 29.5, after changing hands as low as $ 23.68 per share. By comparison, the current RSI reading of the S&P 500 ETF (SPY) is 60.0. A bullish investor might view the ATSG’s 29.5 RSI reading today as a sign that the recent sell-off is running out and start looking for entry point opportunities on the long side. The graph below shows the one-year performance of ATSG shares:

Looking at the chart above, ATSG’s low point in its 52 week range is $ 21.42 per share, with $ 32.43 as a 52 week high, compared with a last trade of 23. $ 87.

Check Out The 9 Other Oversold Stocks You Should Know »

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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