In trading on Friday, shares of the Guggenheim S&P 500 Equal Weight ETF (Symbol: RSP) entered into oversold territory, changing hands as low as $72.365 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 Guggenheim S&P 500 Equal Weight, the RSI reading has hit 29.98 - by comparison, the RSI reading for the S&P 500 is currently 30.1. A bullish investor could look at RSP's 29.98 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), RSP's low point in its 52 week range is $43.77 per share, with $83.15 as the 52 week high point - that compares with a last trade of $72.35. Guggenheim S&P 500 Equal Weight shares are currently trading off about 0.6% on the day.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.