Wi-LAN Enters Oversold Territory
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 Tuesday, shares of Wi-LAN Inc (Toronto: WIN) entered into oversold
territory, hitting an RSI reading of 28.5, after changing hands as low as $4.77
per share. By comparison, the current RSI reading of the S&P/TSX Composite Index
is 41.8. A bullish investor could look at WIN's 28.5 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 WIN shares:

WIN's low point in its 52 week range is $4.60 per share, with $6.12 as the 52
week high point — that compares with a last trade of $4.81.