In trading on Tuesday, shares of the DoubleLine Shiller CAPE U.S. Equities ETF (Symbol: CAPE) entered into oversold territory, changing hands as low as $30.99 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 DoubleLine Shiller CAPE U.S. Equities, the RSI reading has hit 29.97 — by comparison, the RSI reading for the S&P 500 is currently 46.9.
A bullish investor could look at CAPE’s 29.97 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), CAPE’s low point in its 52 week range is $29.74 per share, with $34.25 as the 52 week high point — that compares with a last trade of $31.14. DoubleLine Shiller CAPE U.S. Equities shares are currently trading off about 0.2% on the day.
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