In trading on Wednesday, shares of the Robinson Alternative Yield Pre-Merger SPAC ETF (Symbol: SPAX) entered into oversold territory, changing hands as low as $10.99 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 Robinson Alternative Yield Pre-Merger SPAC, the RSI reading has hit 28.9 — by comparison, the RSI reading for the S&P 500 is currently 52.6.
A bullish investor could look at SPAX’s 28.9 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), SPAX’s low point in its 52 week range is $10.99 per share, with $28.05 as the 52 week high point — that compares with a last trade of $11.49. Robinson Alternative Yield Pre-Merger SPAC shares are currently trading down about 5.6% on the day.
Find out what 9 other oversold stocks you need to know about »
Further SPAX Research:
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
www.nasdaq.com