LLegendary investor Warren Buffett advises to be afraid when others are greedy, and to be greedy when others are fearful. One way to try to gauge the fear level of a given stock is to use 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 as oversold if the RSI reading falls below 30.

During Friday’s trading, shares of Interactive Brokers Group Inc – Class A (Symbol: IBKR) entered oversold territory, reaching an RSI reading of 29.1, after changing hands as low as 54.76 $ per share. By comparison, the current RSI reading of the S&P 500 ETF (SPY) is 39.4. A bullish investor might take IBKR’s RSI of 29.1 today as a sign that the recent strong sell-offs are running out and starting to look for entry point opportunities on the buy side. The chart below shows the one-year performance of IBKR shares:

Looking at the chart above, IBKR’s low point in its 52-week range is $54.76 per share, with $82.8299 as its 52-week high – compare with a last trade of 55, $60.

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