DBMF Crosses Critical Technical Indicator

In trading on Friday, shares of the iMGP DBi Managed Futures Strategy ETF (Symbol: DBMF) entered into oversold territory, changing hands as low as $26.01 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 iMGP DBi Managed Futures Strategy, the RSI reading has hit 24.0 — by comparison, the RSI reading for the S&P 500 is currently 45.9. A bullish investor could look at DBMF's 24.0 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), DBMF's low point in its 52 week range is $25.60 per share, with $30.6299 as the 52 week high point — that compares with a last trade of $26.05. iMGP DBi Managed Futures Strategy shares are currently trading down about 3.4% on the day.

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