In trading on Tuesday, shares of the BLOK ETF (Symbol: BLOK) entered into oversold territory, changing hands as low as $35.5401 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 BLOK, the RSI reading has hit 29.9 — by comparison, the RSI reading for the S&P 500 is currently 42.7.
A bullish investor could look at BLOK’s 29.9 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), BLOK’s low point in its 52 week range is $35.5401 per share, with $64.91 as the 52 week high point — that compares with a last trade of $35.75. BLOK shares are currently trading down about 4.8% on the day.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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