TRI shares 'oversold' in Toronto

“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,” it said.

In trading on Monday, Thomson Reuters’ shares in Toronto hit an RSI reading of 29.7 after changing hands as low as C$27.45 per share. By comparison, the current RSI reading of the S&P/TSX Composite Index is 45.3.

“A bullish investor could look at TRI’s 29.7 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,” Forbes said.

In the chart showing one-year performance of TRI shares, the stock’s low point in its 52-week range is C$26.10 per share, with C$30.40 as the 52-week high point. TRI closed on Monday at C$27.69. ■