In trading on Wednesday, shares of the iShares S&P Mid-Cap 400 Value ETF (Symbol: IJJ) entered into oversold territory, changing hands as low as $161.32 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 S&P Mid-Cap 400 Value, the RSI reading has hit 27.0 - by comparison, the RSI reading for the S&P 500 is currently 25.8. A bullish investor could look at IJJ's 27.0 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), IJJ's low point in its 52 week range is $146.80 per share, with $171 as the 52 week high point - that compares with a last trade of $161.27. iShares S&P Mid-Cap 400 Value shares are currently trading off about 1.7% on the day.