CIU Crosses Critical Technical Indicator
In trading on Tuesday, shares of the iShares Intermediate Credit Bond ETF (Symbol: CIU) entered into oversold territory, changing hands as low as $106.28 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 iShares Intermediate Credit Bond, the RSI reading has hit 29.8 - by comparison, the RSI reading for the S&P 500 is currently 48.7. A bullish investor could look at CIU's 29.8 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), CIU's low point in its 52 week range is $106.28 per share, with $110.6999 as the 52 week high point - that compares with a last trade of $106.34. iShares Intermediate Credit Bond shares are currently trading trading flat on the day.
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