In trading on Thursday, shares of the SPDR Dow Jones Global Real Estate ETF (Symbol: RWO) entered into oversold territory, changing hands as low as $44.7448 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 SPDR Dow Jones Global Real Estate, the RSI reading has hit 28.4 - by comparison, the RSI reading for the S&P 500 is currently 59.2. A bullish investor could look at RWO's 28.4 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), RWO's low point in its 52 week range is $42.01 per share, with $52.60 as the 52 week high point - that compares with a last trade of $45.06. SPDR Dow Jones Global Real Estate shares are currently trading off about 2.1% on the day.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.