ETF Channel Staff - Wednesday, October 25, 11:16 AMIn trading on Wednesday, shares of the iShares U.S. Transportation ETF (IYT) entered into oversold territory, changing hands as low as $217.45 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. Transportation, the RSI reading has hit 26.9 — by comparison, the RSI reading for the S&P 500 is currently 33.2.
A bullish investor could look at IYT's 26.9 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), IYT's low point in its 52 week range is $203.30 per share, with $267.85 as the 52 week high point — that compares with a last trade of $218.03. iShares U.S. Transportation shares are currently trading down about 2.1% on the day.
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Buy (3.20 out of 4) 31st percentile
(ranked lower than approx. 69% of all etfs covered)
Based on data provided by Zacks Investment Research via Quandl.com |
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