Oversold Conditions For Swift Transportation (SWFT)

Jan 9 2014, 12:05pm CST | by

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 Thursday, shares of Swift Transportation Co (NYSE: SWFT) entered into oversold territory, hitting an RSI reading of 28.1, after changing hands as low as $20.13 per share. By comparison, the current RSI reading of the S&P 500 ETF (SPY) is 58.4. A bullish investor could look at SWFT’s 28.1 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 SWFT shares:

Looking at the chart above, SWFT’s low point in its 52 week range is $9.28 per share, with $23.74 as the 52 week high point — that compares with a last trade of $20.25. Find out what 9 other oversold stocks you need to know about »

According to the ETF Finder at ETFChannel.com, SWFT makes up 2.48% of the SPDR S&P Transportation ETF (AMEX: XTN) which is trading higher by about 0.4% on the day Thursday.


Can your brain be trained to become a chart-predicting wizard? Click here to find out


Source: Forbes Business

/>/>
 
 
 

<a href="/latest_stories/all/all/30" rel="author">Forbes</a>
Forbes is among the most trusted resources for the world's business and investment leaders, providing them the uncompromising commentary, concise analysis, relevant tools and real-time reporting they need to succeed at work, profit from investing and have fun with the rewards of winning.

 

blog comments powered by Disqus

Latest stories

Microsoft Edge and Universal Apps are Build 2015 Highlights
Microsoft Edge and Universal Apps are Build 2015 Highlights
Microsoft CEO Satya Nadella just ended the Build 2015 keynote that brought big announcements.
 
 
Comcast Terminates Merger Agreement with Time Warner
Comcast Terminates Merger Agreement with Time Warner
It is official. Comcast announced that there will be no Time Warner deal.
 
 
Starbucks Stores to reopen Today after Computer Outage
Starbucks Stores to reopen Today after Computer Outage
Starbucks, Evolution Fresh and Teavana Tea Bar all suffered a drastic computer outage and shut down early Friday night to deal with the on-hand crisis to open up shop on Saturday.
 
 
Microsoft and Yahoo announce new Search Deal with Big Changes
Microsoft and Yahoo announce new Search Deal with Big Changes
Bing is now the #2 search engine with 20% marketshare behind Google. On the heel of this news, Microsoft and Yahoo announce a new search deal.