In trading on Friday, shares of the Xtrackers Russell US Multifactor ETF (Symbol: DEUS) entered into oversold territory, changing hands as low as $64.76 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 Xtrackers Russell US Multifactor, the RSI reading has hit 28.6 — by comparison, the RSI reading for the S&P 500 is currently 46.0.
A bullish investor could look at DEUS’s 28.6 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), DEUS’s low point in its 52 week range is $56.175 per share, with $68.4999 as the 52 week high point — that compares with a last trade of $64.91. Xtrackers Russell US Multifactor shares are currently trading off about 1% on the day.
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