In trading on Friday, shares of the iShares U.S. Technology ETF (Symbol: IYW) entered into oversold territory, changing hands as low as $152.06 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 U.S. Technology, the RSI reading has hit 29.9 - by comparison, the RSI reading for the S&P 500 is currently 22.0. A bullish investor could look at IYW's 29.9 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), IYW's low point in its 52 week range is $151.58 per share, with $196.9698 as the 52 week high point - that compares with a last trade of $152.09. iShares U.S. Technology shares are currently trading down about 3.2% on the day.