In trading on Friday, shares of the CWI ETF (Symbol: CWI) entered into oversold territory, changing hands as low as $21.595 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 CWI, the RSI reading has hit 26.4 — by comparison, the RSI reading for the S&P 500 is currently 29.8. A bullish investor could look at CWI's 26.4 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), CWI's low point in its 52 week range is $21.55 per share, with $30.44 as the 52 week high point — that compares with a last trade of $21.57. CWI shares are currently trading off about 2.6% on the day.
Free Report: Top 7%+ Dividends (paid monthly)
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.