In trading on Monday, shares of the SPDR SSgA Multi-Asset Real Return ETF (Symbol: RLY) entered into oversold territory, changing hands as low as $35.1801 per share. We define oversold territory using the Relative Strength Index, or RSI, which is a technical analysis indicator used to measure momentum on a scale of zero to 100. A stock is considered to be oversold if the RSI reading falls below 30.
In the case of SPDR SSgA Multi-Asset Real Return, the RSI reading has hit 29.8 — by comparison, the RSI reading for the S&P 500 is currently 53.5.
A bullish investor could look at RLY’s 29.8 reading 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.
Looking at a chart of one year performance (below), RLY’s low point in its 52 week range is $28.80 per share, with $37.43 as the 52 week high point — that compares with a last trade of $35.31. SPDR SSgA Multi-Asset Real Return shares are currently trading down about 0.3% on the day.
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Further RLY Research:
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