Relative Strength Alert For Canfor (CFP)

Apr 10 2014, 4:34pm CDT | by

Relative Strength Alert For Canfor (CFP)
Photo Credit: Forbes Business

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 Canfor Corp (Toronto: CFP) entered into oversold territory, hitting an RSI reading of 29.6, after changing hands as low as $24.32 per share. By comparison, the current RSI reading of the S&P/TSX Composite Index is 50.5. A bullish investor could look at CFP’s 29.6 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 CFP shares:

Click here to find out which 9 other oversold Canadian stocks you need to know about, at DividendChannel.com »

Looking at the chart above, CFP’s low point in its 52 week range is $17.28 per share, with $30.02 as the 52 week high point — that compares with a last trade of $24.51. Find out what 9 other oversold stocks you need to know about »


Special Offer: Follow Gordon Pape’s Canadian stock tips with a 30 day FREE trial to the Internet Wealth Builder newsletter
/>/>
 
 
 

<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

Apple Watch gets 12-page Vogue Magazine Ad
Apple Watch gets 12-page Vogue Magazine Ad
The March issue of Vogue Magazine packs 12 pages of Apple Watch ads.
 
 
Wearables that go beyond the Apple Watch
Wearables that go beyond the Apple Watch
Apple Watch is going to open a new chapter in wearables, but where is the future?
 
 
Russia allows buffalo meat imports from India
Moscow, Dec 4 (IANS/TASS) Russia has allowed imports of buffalo meat from India, the country's veterinary regulator said Thursday.
 
 
New guidelines for prostate cancer testing
Melbourne, Dec 4 (IANS) Prostate cancer checks in Australia are set to improve after cancer agencies and health experts reached an agreement on new testing guidelines at the World Cancer Congress (WCC) currently being held in Melbourne.