IUSB Crosses Critical Technical Indicator
In trading on Monday, shares of the iShares Core Total USD Bond Market ETF (Symbol: IUSB) entered into oversold territory, changing hands as low as $49.72 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 Core Total USD Bond Market, the RSI reading has hit 28.2 — by comparison, the RSI reading for the S&P 500 is currently 45.4. A bullish investor could look at IUSB's 28.2 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), IUSB's low point in its 52 week range is $49.715 per share, with $54.09 as the 52 week high point — that compares with a last trade of $49.72. iShares Core Total USD Bond Market shares are currently trading down about 0.6% on the day.
