In trading on Friday, shares of the UITB ETF (Symbol: UITB) entered into oversold territory, changing hands as low as $53.19 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 UITB, the RSI reading has hit 29.0 — by comparison, the RSI reading for the S&P 500 is currently 49.7.
A bullish investor could look at UITB’s 29.0 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), UITB’s low point in its 52 week range is $52.61 per share, with $54.68 as the 52 week high point — that compares with a last trade of $53.21. UITB shares are currently trading off about 0.3% on the day.
Free Report: Top 7%+ Dividends (paid monthly)
Find out what 9 other oversold 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