In trading on Monday, shares of the iShares Global Tech ETF (Symbol: IXN) entered into oversold territory, changing hands as low as $135.49 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 Tech, the RSI reading has hit 29.4 - by comparison, the RSI reading for the S&P 500 is currently 20.5. A bullish investor could look at IXN'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), IXN's low point in its 52 week range is $135.49 per share, with $177.614 as the 52 week high point - that compares with a last trade of $137.19. iShares Global Tech shares are currently trading off about 0.7% on the day.