ETF Channel Staff - Tuesday, May 23, 3:51 PMIn trading on Tuesday, shares of the The Utilities Select Sector SPDR Fund ETF (XLU) entered into oversold territory, changing hands as low as $65.72 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 The Utilities Select Sector SPDR Fund, the RSI reading has hit 29.5 — by comparison, the RSI reading for the S&P 500 is currently 53.1.
A bullish investor could look at XLU's 29.5 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), XLU's low point in its 52 week range is $60.35 per share, with $78.22 as the 52 week high point — that compares with a last trade of $66.03. The Utilities Select Sector SPDR Fund shares are currently trading down about 0.1% on the day.
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Buy (2.96 out of 4) 0th percentile
(ranked lower than approx. 100% of all etfs covered)
Based on data provided by Zacks Investment Research via Quandl.com |
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