QLTA Crowded With Sellers

In trading on Tuesday, shares of the iShares Aaa - A Rated Corporate Bond ETF (Symbol: QLTA) entered into oversold territory, changing hands as low as $45.83 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 Aaa - A Rated Corporate Bond, the RSI reading has hit 28.9 — by comparison, the RSI reading for the S&P 500 is currently 38.6. A bullish investor could look at QLTA's 28.9 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), QLTA's low point in its 52 week range is $43.80 per share, with $48.3801 as the 52 week high point — that compares with a last trade of $45.91. iShares Aaa - A Rated Corporate Bond shares are currently trading off about 0.4% on the day.

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