CAPE Crosses Critical Technical Indicator
In trading on Thursday, shares of the DoubleLine Shiller CAPE U.S. Equities ETF (Symbol: CAPE) entered into oversold territory, changing hands as low as $30.58 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 DoubleLine Shiller CAPE U.S. Equities, the RSI reading has hit 29.0 — by comparison, the RSI reading for the S&P 500 is currently 32.5. A bullish investor could look at CAPE's 29.0 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), CAPE's low point in its 52 week range is $27.01 per share, with $33.295 as the 52 week high point — that compares with a last trade of $30.58. DoubleLine Shiller CAPE U.S. Equities shares are currently trading down about 1.2% on the day.
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