In trading on Wednesday, shares of the SPDR Dow Jones REIT ETF (Symbol: RWR) entered into oversold territory, changing hands as low as $89.42 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 REIT, the RSI reading has hit 29.9 - by comparison, the RSI reading for the S&P 500 is currently 77.5. A bullish investor could look at RWR'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), RWR's low point in its 52 week range is $89.42 per share, with $96.57 as the 52 week high point - that compares with a last trade of $89.71. SPDR Dow Jones REIT shares are currently trading down about 1.2% on the day.