iShares 1-3 Year Credit Bond (CSJ) Enters Oversold Territory
In trading on Monday, shares of the iShares 1-3 Year Credit Bond ETF (Symbol: CSJ) entered into oversold territory, changing hands as low as $105.03 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 1-3 Year Credit Bond, the RSI reading has hit 25.2 - by comparison, the RSI reading for the S&P 500 is currently 60.4. A bullish investor could look at CSJ's 25.2 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), CSJ's low point in its 52 week range is $104.36 per share, with $106.12 as the 52 week high point - that compares with a last trade of $105.05. iShares 1-3 Year Credit Bond shares are currently trading off about 0.1% on the day.