Pinnacle West Capital Enters Oversold Territory (PNW)

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 Pinnacle West Capital Corp (Symbol: PNW) entered into oversold territory, hitting an RSI reading of 28.9, after changing hands as low as $75.63 per share. By comparison, the current RSI reading of the S&P 500 ETF (SPY) is 52.5. A bullish investor could look at PNW's 28.