DGRO Crosses Critical Technical Indicator
In trading on Monday, shares of the iShares Core Dividend Growth ETF (Symbol: DGRO) entered into oversold territory, changing hands as low as $28.19 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 Core Dividend Growth, the RSI reading has hit 29.6 — by comparison, the RSI reading for the S&P 500 is currently 29.8. A bullish investor could look at DGRO's 29.6 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), DGRO's low point in its 52 week range is $28.19 per share, with $43.17 as the 52 week high point — that compares with a last trade of $28.68. iShares Core Dividend Growth shares are currently trading down about 1.4% on the day.
