Shares of ROBO Now Oversold

In trading on Monday, shares of the ROBO Global Robotics and Automation Index ETF (Symbol: ROBO) entered into oversold territory, changing hands as low as $69.2158 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 ROBO Global Robotics and Automation Index, the RSI reading has hit 29.5 — by comparison, the RSI reading for the S&P 500 is currently 33.9. A bullish investor could look at ROBO'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), ROBO's low point in its 52 week range is $43.17 per share, with $79.7279 as the 52 week high point — that compares with a last trade of $70.32. ROBO Global Robotics and Automation Index shares are currently trading off about 2.9% on the day.

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