STIP Crowded With Sellers
In trading on Thursday, shares of the STIP ETF (Symbol: STIP) entered into oversold territory, changing hands as low as $98.89 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 STIP, the RSI reading has hit 23.2 — by comparison, the RSI reading for the S&P 500 is currently 36.4. A bullish investor could look at STIP's 23.2 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), STIP's low point in its 52 week range is $98.84 per share, with $107.10 as the 52 week high point — that compares with a last trade of $98.93. STIP shares are currently trading down about 1.4% on the day.
