Shares of IWB ETF (Symbol: IWB) entered oversold territory during trading on Friday, trading at $203.31 per share. We identify 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 oversold when the RSI drops below 30.
In the case of the IWB, the RSI reached 29.8 — by comparison, the RSI for the S&P 500 is currently at 29.8. A bullish investor may view the IWB reading of 29.8 as a sign that the recent intense sell-off is in the process of being exhausted and start looking for buy-side entry opportunities.
Looking at the one-year performance chart (below), IWB’s 52-week low point is $199.58 per share, with $267.13 as the 52-week high point, compared to a recent trade of $203.62 . IWB shares are currently trading around 1.6% on the day.
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
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