IAUM Crosses Critical Technical Indicator
In trading on Tuesday, shares of the IAUM ETF (Symbol: IAUM) entered into oversold territory, changing hands as low as $18.38 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 IAUM, the RSI reading has hit 29.2 — by comparison, the RSI reading for the S&P 500 is currently 33.6. A bullish investor could look at IAUM's 29.2 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), IAUM's low point in its 52 week range is $17.215 per share, with $20.695 as the 52 week high point — that compares with a last trade of $18.39. IAUM shares are currently trading off about 0.7% on the day.
