IGIB Crosses Critical Technical Indicator
In trading on Wednesday, shares of the iShares Intermediate-Term Corporate Bond ETF (Symbol: IGIB) entered into oversold territory, changing hands as low as $56.70 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-Term Corporate Bond, the RSI reading has hit 24.7 — by comparison, the RSI reading for the S&P 500 is currently 31.9. A bullish investor could look at IGIB's 24.7 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), IGIB's low point in its 52 week range is $54.12 per share, with $60.43 as the 52 week high point — that compares with a last trade of $56.92. iShares Intermediate-Term Corporate Bond shares are currently trading off about 2.2% on the day.
