In trading on Monday, shares of the Invesco DB Energy Fund ETF (Symbol: DBE) entered into oversold territory, changing hands as low as $26.875 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 Invesco DB Energy Fund, the RSI reading has hit 29.5 — by comparison, the RSI reading for the S&P 500 is currently 53.5.
A bullish investor could look at DBE’s 29.5 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), DBE’s low point in its 52 week range is $17.015 per share, with $34.36 as the 52 week high point — that compares with a last trade of $27.06. Invesco DB Energy Fund shares are currently trading down about 1.6% on the day.
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Further DBE Research:
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