In trading on Thursday, shares of the iShares MSCI USA Momentum Factor ETF (Symbol: MTUM) entered into oversold territory, changing hands as low as $237.86 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 MSCI USA Momentum Factor, the RSI reading has hit 29.9 — by comparison, the RSI reading for the S&P 500 is currently 37.0.
A bullish investor could look at MTUM’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), MTUM’s low point in its 52 week range is $171.515 per share, with $258.96 as the 52 week high point — that compares with a last trade of $238.02. iShares MSCI USA Momentum Factor shares are currently trading off about 1.9% on the day.
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