Children’s Place enters oversold territory (PLCE)

LLegendary 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 Monday’s trading, shares of Children’s Place Inc (ticker: PLCE) entered oversold territory, hitting an RSI of 27.1, after changing hands as low as $ 70.25 per share. By comparison, the current RSI reading for the S&P 500 ETF (SPY) is 40.9. A bullish investor might view PLCE’s 27.1 RSI 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 performance over one year of the PLCE share:

Looking at the chart above, PLCE’s low point in its 52 week range is $ 42.83 per share, with $ 113.50 as a 52 week high, compared to a last trade of 70.89. $.

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.

Comments are closed.