BCI Crowded With Sellers

In trading on Thursday, shares of the BCI ETF (Symbol: BCI) entered into oversold territory, changing hands as low as $19.22 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 BCI, the RSI reading has hit 27.9 — by comparison, the RSI reading for the S&P 500 is currently 45.5. A bullish investor could look at BCI's 27.9 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), BCI's low point in its 52 week range is $18.80 per share, with $21.53 as the 52 week high point — that compares with a last trade of $19.22. BCI shares are currently trading down about 3.2% on the day.

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