BBC Crosses Critical Technical Indicator
In trading on Tuesday, shares of the Virtus Biotech Clinical Trials ETF (Symbol: BBC) entered into oversold territory, changing hands as low as $42.8317 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 Virtus Biotech Clinical Trials, the RSI reading has hit 26.6 — by comparison, the RSI reading for the S&P 500 is currently 64.0. A bullish investor could look at BBC's 26.6 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), BBC's low point in its 52 week range is $27.62 per share, with $56.18 as the 52 week high point — that compares with a last trade of $43.07. Virtus Biotech Clinical Trials shares are currently trading off about 3.3% on the day.
Find out what 9 other oversold stocks you need to know about »
Further BBC Research:
