In trading on Thursday, shares of the iShares Edge MSCI Min Vol USA ETF (Symbol: USMV) entered into oversold territory, changing hands as low as $51.36 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 iShares Edge MSCI Min Vol USA, the RSI reading has hit 28.5 - by comparison, the RSI reading for the S&P 500 is currently 27.1. A bullish investor could look at USMV's 28.5 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), USMV's low point in its 52 week range is $49.7142 per share, with $57.67 as the 52 week high point - that compares with a last trade of $52.12. iShares Edge MSCI Min Vol USA shares are currently trading off about 1% on the day.