Oversold Harry Winston Diamond Shares Could be Buying Opportunity

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.

Click here to read the full Forbes report.