In trading on Monday, shares of the Invesco Global Clean Energy ETF (Symbol: PBD) entered into oversold territory, changing hands as low as $18.21 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 Global Clean Energy, the RSI reading has hit 29.8 — by comparison, the RSI reading for the S&P 500 is currently 52.3.
A bullish investor could look at PBD’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), PBD’s low point in its 52 week range is $13.04 per share, with $22.5799 as the 52 week high point — that compares with a last trade of $18.24. Invesco Global Clean Energy shares are currently trading off about 2.2% on the day.
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Further PBD Research:
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