As the well known investor Warren Buffett advises said, "to be fearful when others are greedy, and be greedy when others are fearful"
One way we can measure the level of fearful in is using 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 last Friday, shares of Alibaba (BABA) entered into oversold area, hitting an RSI reading of 29.1.
It may be the best entry point for long term investment.The chart below shows the last year performance of BABA shares. BABA's 52 week range is from $319.32 to $152.80 per share.
One way we can measure the level of fearful in is using 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 last Friday, shares of Alibaba (BABA) entered into oversold area, hitting an RSI reading of 29.1.
It may be the best entry point for long term investment.The chart below shows the last year performance of BABA shares. BABA's 52 week range is from $319.32 to $152.80 per share.