In trading on Friday, shares of the ROBO Global Robotics and Automation Index ETF (Symbol: ROBO) entered into oversold territory, changing hands as low as $62.8415 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 Global Robotics and Automation Index, the RSI reading has hit 29.9 — by comparison, the RSI reading for the S&P 500 is currently 37.1.
A bullish investor could look at ROBO’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), ROBO’s low point in its 52 week range is $43.17 per share, with $70.32 as the 52 week high point — that compares with a last trade of $63.06. ROBO Global Robotics and Automation Index shares are currently trading off about 0.1% on the day.
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