Relative Strength Alert For Ocwen Financial

Feb 26 2014, 3:34pm 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 Wednesday, shares of Ocwen Financial Corp. (NYSE: OCN) entered into oversold territory, hitting an RSI reading of 29.5, after changing hands as low as $36.00 per share. By comparison, the current RSI reading of the S&P 500 ETF (SPY) is 58.3. A bullish investor could look at OCN’s 29.5 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 OCN shares:

Looking at the chart above, OCN’s low point in its 52 week range is $33.54 per share, with $60.18 as the 52 week high point — that compares with a last trade of $36.76. Find out what 9 other oversold stocks you need to know about »

According to the ETF Finder at ETFChannel.com, OCN makes up 2.38% of the DWA Financial Momentum Portfolio ETF (AMEX: PFI) which is trading up by about 0.2% on the day Wednesday.


Special Offer: Find out what Dave Moenning is holding in the ETF Channel Flexible Growth Investment Portfolio with a special 20% off coupon from Forbes and 30 Days Free.

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

Amazon Changes Self Publishing Forever - Again
Amazon Changes Self Publishing Forever - Again
The self publishing haven will only pay when books are read.
 
 
Uber says "NO!" to Guns for Passengers and Drivers
Uber says "NO!" to Guns for Passengers and Drivers
The recent increase in gun violence led to the change, the hitch-a-ride giant says.
 
 
More Sony Leaks: What Couldn't the New Spiderman Be?
More Sony Leaks: What Couldn't the New Spiderman Be?
Private emails that were released show that executives at Sony didn't want a black or gay Spiderman.
 
 
Gap to Close 175 Stores Soon
Gap to Close 175 Stores Soon
The retail giant is experiencing a multitude of problems.