In trading on Thursday, shares of the Allspring Broad Market Core Bond ETF (Symbol: AFIX) entered into oversold territory, changing hands as low as $23.705 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 Allspring Broad Market Core Bond, the RSI reading has hit 29.3 — by comparison, the RSI reading for the S&P 500 is currently 51.7.
A bullish investor could look at AFIX’s 29.3 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), AFIX’s low point in its 52 week range is $23.68 per share, with $25.5909 as the 52 week high point — that compares with a last trade of $23.68. Allspring Broad Market Core Bond shares are currently trading off about 0.7% on the day.
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