In trading on Thursday, shares of the MMIN ETF (Symbol: MMIN) entered into oversold territory, changing hands as low as $26.84 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 MMIN, the RSI reading has hit 29.3 — by comparison, the RSI reading for the S&P 500 is currently 50.4. A bullish investor could look at MMIN's 29.3 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), MMIN's low point in its 52 week range is $26.75 per share, with $27.94 as the 52 week high point — that compares with a last trade of $26.87. MMIN shares are currently trading down about 0.1% on the day.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
