In trading on Wednesday, shares of the SPDR Portfolio Mortgage Backed Bond ETF (Symbol: SPMB) entered into oversold territory, changing hands as low as $24.01 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 Mortgage Backed Bond, the RSI reading has hit 29.7 — by comparison, the RSI reading for the S&P 500 is currently 51.2. A bullish investor could look at SPMB's 29.7 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), SPMB's low point in its 52 week range is $24.01 per share, with $26.05 as the 52 week high point — that compares with a last trade of $24.14. SPDR Portfolio Mortgage Backed Bond shares are currently trading down about 0.1% on the day.
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