IWD Crowded With Sellers

In trading on Monday, shares of the iShares Russell 1000 Value ETF (Symbol: IWD) entered into oversold territory, changing hands as low as $153.52 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 1000 Value, the RSI reading has hit 29.4 — by comparison, the RSI reading for the S&P 500 is currently 31.4. A bullish investor could look at IWD's 29.4 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), IWD's low point in its 52 week range is $134.09 per share, with $164.18 as the 52 week high point — that compares with a last trade of $153.94. iShares Russell 1000 Value shares are currently trading down about 0.3% on the day.

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