In trading on Friday, shares of the iShares Russell Top 200 Growth ETF (Symbol: IWY) entered into oversold territory, changing hands as low as $68.27 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 Russell Top 200 Growth, the RSI reading has hit 27.2 - by comparison, the RSI reading for the S&P 500 is currently 22.0. A bullish investor could look at IWY's 27.2 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), IWY's low point in its 52 week range is $68.03 per share, with $86.21 as the 52 week high point - that compares with a last trade of $68.35. iShares Russell Top 200 Growth shares are currently trading off about 2.7% 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.