In trading on Tuesday, shares of the Dimensional Inflation-Protected Securities ETF (Symbol: DFIP) entered into oversold territory, changing hands as low as $41.02 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 Dimensional Inflation-Protected Securities, the RSI reading has hit 28.1 — by comparison, the RSI reading for the S&P 500 is currently 45.9.
A bullish investor could look at DFIP’s 28.1 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), DFIP’s low point in its 52 week range is $41.02 per share, with $42.77 as the 52 week high point — that compares with a last trade of $41.05. Dimensional Inflation-Protected Securities shares are currently trading down about 1.1% on the day.
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Further DFIP Research:
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