In trading on Thursday, shares of the iShares Preferred and Income Securities ETF (Symbol: PFF) entered into oversold territory, changing hands as low as $30.295 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 Preferred and Income Securities, the RSI reading has hit 27.1 — by comparison, the RSI reading for the S&P 500 is currently 37.0.
A bullish investor could look at PFF’s 27.1 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), PFF’s low point in its 52 week range is $28.70 per share, with $32.98 as the 52 week high point — that compares with a last trade of $30.31. iShares Preferred and Income Securities shares are currently trading down about 0.6% on the day.
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Also see:
Stock RSI
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