In trading on Monday, shares of the Real Estate Select Sector SPDR Fund ETF (Symbol: XLRE) entered into oversold territory, changing hands as low as $30.24 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 Real Estate Select Sector SPDR Fund, the RSI reading has hit 28.5 - by comparison, the RSI reading for the S&P 500 is currently 20.5. A bullish investor could look at XLRE'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), XLRE's low point in its 52 week range is $29.17 per share, with $34.50 as the 52 week high point - that compares with a last trade of $30.39. Real Estate Select Sector SPDR Fund shares are currently trading down about 1.8% on the day.