IXJ Crosses Critical Technical Indicator

In trading on Friday, shares of the iShares Global Healthcare ETF (Symbol: IXJ) entered into oversold territory, changing hands as low as $87.80 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 Global Healthcare, the RSI reading has hit 27.8 — by comparison, the RSI reading for the S&P 500 is currently 43.8. A bullish investor could look at IXJ's 27.8 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), IXJ's low point in its 52 week range is $77.96 per share, with $93.37 as the 52 week high point — that compares with a last trade of $87.90. iShares Global Healthcare shares are currently trading off about 1.5% on the day.

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