CUT Crosses Critical Technical Indicator
In trading on Thursday, shares of the Invesco MSCI Global Timber ETF (Symbol: CUT) entered into oversold territory, changing hands as low as $27.52 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 Invesco MSCI Global Timber, the RSI reading has hit 28.4 — by comparison, the RSI reading for the S&P 500 is currently 48.5. A bullish investor could look at CUT's 28.4 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), CUT's low point in its 52 week range is $26.30 per share, with $32.949 as the 52 week high point — that compares with a last trade of $27.60. Invesco MSCI Global Timber shares are currently trading off about 1.7% on the day.
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