In trading on Monday, shares of the Invesco S&P 500 Equal Weight Communication Services ETF (Symbol: RSPC) entered into oversold territory, changing hands as low as $35.127 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 S&P 500 Equal Weight Communication Services, the RSI reading has hit 27.0 — by comparison, the RSI reading for the S&P 500 is currently 53.5.
A bullish investor could look at RSPC’s 27.0 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), RSPC’s low point in its 52 week range is $35.127 per share, with $41.47 as the 52 week high point — that compares with a last trade of $35.30. Invesco S&P 500 Equal Weight Communication Services shares are currently trading off about 0.9% on the day.
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Further RSPC Research:
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