Credit: Shutterstock photoIn trading on Friday, shares of the SPDR Portfolio S&P 500 Growth ETF (Symbol: SPYG) entered into oversold territory, changing hands as low as $31.26 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 Portfolio S&P 500 Growth, the RSI reading has hit 26.7 - by comparison, the RSI reading for the S&P 500 is currently 22.0. A bullish investor could look at SPYG's 26.7 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), SPYG's low point in its 52 week range is $31.1699 per share, with $38.55 as the 52 week high point - that compares with a last trade of $31.31. SPDR Portfolio S&P 500 Growth shares are currently trading down about 2.6% on the day.
Find out what 9 other oversold stocks you need to know about »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
