ETF Channel Staff - Friday, September 17, 4:02 PMIn trading on Friday, shares of the iShares U.S. Pharmaceuticals ETF (IHE) entered into oversold territory, changing hands as low as $185.49 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 U.S. Pharmaceuticals, the RSI reading has hit 29.2 — by comparison, the RSI reading for the S&P 500 is currently 40.8.
A bullish investor could look at IHE's 29.2 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), IHE's low point in its 52 week range is $157.9304 per share, with $199.5078 as the 52 week high point — that compares with a last trade of $185.46. iShares U.S. Pharmaceuticals shares are currently trading off about 0.8% on the day.
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Buy (3.18 out of 4)
(ranked lower than approx. 88% of all etfs covered)
Based on data provided by Zacks Investment Research via Quandl.com