CGGO Crosses Critical Technical Indicator

In trading on Thursday, shares of the Capital Group Global Growth Equity ETF (Symbol: CGGO) entered into oversold territory, changing hands as low as $27.55 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 Capital Group Global Growth Equity, the RSI reading has hit 29.9 — by comparison, the RSI reading for the S&P 500 is currently 30.7. A bullish investor could look at CGGO's 29.9 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), CGGO's low point in its 52 week range is $26.52 per share, with $30.939 as the 52 week high point — that compares with a last trade of $27.55. Capital Group Global Growth Equity shares are currently trading off about 3.6% on the day.

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