MOAT Crosses Critical Technical Indicator

In trading on Wednesday, shares of the Morningstar Wide Moat ETF (Symbol: MOAT) entered into oversold territory, changing hands as low as $71.78 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 Morningstar Wide Moat, the RSI reading has hit 26.6 — by comparison, the RSI reading for the S&P 500 is currently 33.2. A bullish investor could look at MOAT's 26.6 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), MOAT's low point in its 52 week range is $60.48 per share, with $83.87 as the 52 week high point — that compares with a last trade of $71.96. Morningstar Wide Moat shares are currently trading off about 1.5% on the day.

{{ InlineImage1 }}

Find out what 9 other oversold stocks you need to know about »

Also see: