In trading on Thursday, shares of the iShares Global Energy ETF (Symbol: IXC) entered into oversold territory, changing hands as low as $49.32 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 Global Energy, the RSI reading has hit 29.9 — by comparison, the RSI reading for the S&P 500 is currently 54.4.
A bullish investor could look at IXC’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), IXC’s low point in its 52 week range is $38.88 per share, with $59.18 as the 52 week high point — that compares with a last trade of $49.77. iShares Global Energy shares are currently trading off about 1.7% on the day.
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Further IXC Research:
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