Forbes reported that shares of Harry Winston Diamond Corp. (TSX:HW) shifted into the oversold category on the Relative Strength Index, a technical analysis tool that measures the level of fear surrounding a stock.
As quoted in the market news:
[The Relative Strength Index] 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 Wednesday, shares of Harry Winston Diamond Corp (Toronto: HW) entered into oversold territory, hitting an RSI reading of 29.2, after changing hands as low as $11.27 per share. By comparison, the current RSI reading of the S&P/TSX Composite Index is 50.6. A bullish investor could look at HW’s 29.2 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.