SCHD Crosses Critical Technical Indicator

In trading on Friday, shares of the SCHD ETF (Symbol: SCHD) entered into oversold territory, changing hands as low as $67.4933 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 SCHD, the RSI reading has hit 28.1 — by comparison, the RSI reading for the S&P 500 is currently 30.0. A bullish investor could look at SCHD'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), SCHD's low point in its 52 week range is $67.4601 per share, with $79.49 as the 52 week high point — that compares with a last trade of $67.49. SCHD shares are currently trading down about 1% on the day.

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