In trading on Wednesday, shares of the Invesco DB Precious Metals Fund ETF (Symbol: DBP) entered into oversold territory, changing hands as low as $95.565 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 Invesco DB Precious Metals Fund, the RSI reading has hit 25.5 — by comparison, the RSI reading for the S&P 500 is currently 40.8.
A bullish investor could look at DBP’s 25.5 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), DBP’s low point in its 52 week range is $74.0699 per share, with $140.72 as the 52 week high point — that compares with a last trade of $95.37. Invesco DB Precious Metals Fund shares are currently trading down about 3.5% on the day.
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Further DBP Research:
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