In trading on Thursday, shares of the SPDR Barclays
International Treasury Bond ETF (Symbol: BWX) entered into oversold
territory, changing hands as low as $58.94 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 SPDR Barclays International Treasury Bond, the RSI
reading has hit 29.7 - by comparison, the RSI reading for the
S&P 500 is currently 58.8. A bullish investor could look at
BWX's 29.7 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), BWX's low point
in its 52 week range is $55.92 per share, with $61.78 as the 52
week high point - that compares with a last trade of $59.14. SPDR
Barclays International Treasury Bond shares are currently trading
off about 0.8% on the day.
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