In trading on Monday, shares of the WisdomTree SmallCap Dividend Fund ETF (Symbol: DES) entered into oversold territory, changing hands as low as $67.41 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 WisdomTree SmallCap Dividend Fund, the RSI reading has hit 29.1 - by comparison, the RSI reading for the S&P 500 is currently 41.1. A bullish investor could look at DES's 29.1 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), DES's low point in its 52 week range is $63.50 per share, with $72.99 as the 52 week high point - that compares with a last trade of $67.67. WisdomTree SmallCap Dividend Fund shares are currently trading off about 0.6% on the day.