In trading on Thursday, shares of the iShares— iBonds— Dec 2024 Term Corporate ETF (Symbol: IBDP) entered into oversold territory, changing hands as low as $26.09 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 iShares— iBonds— Dec 2024 Term Corporate, the RSI reading has hit 27.9 — by comparison, the RSI reading for the S&P 500 is currently 62.7.
A bullish investor could look at IBDP’s 27.9 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), IBDP’s low point in its 52 week range is $26.09 per share, with $26.6231 as the 52 week high point — that compares with a last trade of $26.11. iShares— iBonds— Dec 2024 Term Corporate shares are currently trading off about 0.2% on the day.
Click here to find out what 9 other oversold dividend stocks you need to know about »
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