LDDR Crosses Critical Technical Indicator
In trading on Monday, shares of the LDDR ETF (Symbol: LDDR) entered into oversold territory, changing hands as low as $79.68 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 LDDR, the RSI reading has hit 28.1 — by comparison, the RSI reading for the S&P 500 is currently 68.2. A bullish investor could look at LDDR's 28.1 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), LDDR's low point in its 52 week range is $79.50 per share, with $94.96 as the 52 week high point — that compares with a last trade of $79.72. LDDR shares are currently trading down about 1.3% on the day.
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