iShares S&P 500 Value Getting Very Oversold

In trading on Friday, shares of the iShares S&P 500 Value ETF (Symbol: IVE) entered into oversold territory, changing hands as low as $147.24 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 S&P 500 Value, the RSI reading has hit 29.2 — by comparison, the RSI reading for the S&P 500 is currently 27.1. A bullish investor could look at IVE'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), IVE's low point in its 52 week range is $139.08 per share, with $167.6196 as the 52 week high point — that compares with a last trade of $147.62. iShares S&P 500 Value shares are currently trading off about 0.6% on the day.

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