In trading on Monday, shares of the ROBO ETF (Symbol: ROBO) entered into oversold territory, changing hands as low as $62.2558 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 ROBO, the RSI reading has hit 29.4 — by comparison, the RSI reading for the S&P 500 is currently 38.1.
A bullish investor could look at ROBO’s 29.4 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), ROBO’s low point in its 52 week range is $47.90 per share, with $72.28 as the 52 week high point — that compares with a last trade of $62.49. ROBO shares are currently trading down about 2.8% 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