In trading on Friday, shares of the ProShares S&P 500 Dividend Aristocrats ETF (Symbol: NOBL) entered into oversold territory, changing hands as low as $54.40 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 ProShares S&P 500 Dividend Aristocrats, the RSI reading has hit 28.2 - by comparison, the RSI reading for the S&P 500 is currently 41.7. A bullish investor could look at NOBL's 28.2 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), NOBL's low point in its 52 week range is $44.61 per share, with $56.28 as the 52 week high point - that compares with a last trade of $54.39. ProShares S&P 500 Dividend Aristocrats shares are currently trading down about 1.5% 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.