GVI Crowded With Sellers
In trading on Wednesday, shares of the iShares Intermediate Government/Credit Bond ETF (Symbol: GVI) entered into oversold territory, changing hands as low as $109.01 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 iShares Intermediate Government/Credit Bond, the RSI reading has hit 29.0 — by comparison, the RSI reading for the S&P 500 is currently 32.4. A bullish investor could look at GVI's 29.0 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), GVI's low point in its 52 week range is $107.08 per share, with $117.74 as the 52 week high point — that compares with a last trade of $110.35. iShares Intermediate Government/Credit Bond shares are currently trading down about 1.4% on the day.
