ETF Channel Staff - Wednesday, December 6, 3:53 PMIn trading on Wednesday, shares of the Oil Services ETF (OIH) entered into oversold territory, changing hands as low as $294.85 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 Oil Services, the RSI reading has hit 27.4 — by comparison, the RSI reading for the S&P 500 is currently 67.2.
A bullish investor could look at OIH's 27.4 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), OIH's low point in its 52 week range is $246.04 per share, with $364.08 as the 52 week high point — that compares with a last trade of $295.52. Oil Services shares are currently trading down about 3.1% on the day.
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Buy (3.29 out of 4) 100th percentile
(ranked higher than approx. 100% of all etfs covered)
Based on data provided by Zacks Investment Research via Quandl.com |
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