In trading on Monday, shares of the iShares Global Healthcare ETF (Symbol: IXJ) entered into oversold territory, changing hands as low as $97.70 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 Global Healthcare, the RSI reading has hit 29.5 - by comparison, the RSI reading for the S&P 500 is currently 36.3. A bullish investor could look at IXJ's 29.5 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), IXJ's low point in its 52 week range is $58.64 per share, with $113.95 as the 52 week high point - that compares with a last trade of $98.02. iShares Global Healthcare shares are currently trading off about 1.6% on the day.