In trading on Friday, shares of the SPDR Blackstone / GSO Senior Loan ETF (Symbol: SRLN) entered into oversold territory, changing hands as low as $47.08 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 Blackstone / GSO Senior Loan, the RSI reading has hit 27.0 - by comparison, the RSI reading for the S&P 500 is currently 54.7. A bullish investor could look at SRLN's 27.0 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), SRLN's low point in its 52 week range is $47.08 per share, with $47.69 as the 52 week high point - that compares with a last trade of $47.11. SPDR Blackstone / GSO Senior Loan shares are currently trading down about 0.4% on the day.