In trading on Friday, shares of the AVUS ETF (Symbol: AVUS) entered into oversold territory, changing hands as low as $63.50 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 AVUS, the RSI reading has hit 29.2 — by comparison, the RSI reading for the S&P 500 is currently 29.8. A bullish investor could look at AVUS'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), AVUS's low point in its 52 week range is $63.22 per share, with $81.26 as the 52 week high point — that compares with a last trade of $63.48. AVUS shares are currently trading down about 2.2% on the day.
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