In trading on Thursday, shares of the iShares Exponential Technologies ETF (Symbol: XT) entered into oversold territory, changing hands as low as $32.56 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 Exponential Technologies, the RSI reading has hit 29.7 - by comparison, the RSI reading for the S&P 500 is currently 27.1. A bullish investor could look at XT'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), XT's low point in its 52 week range is $32.56 per share, with $39.15 as the 52 week high point - that compares with a last trade of $33.00. iShares Exponential Technologies shares are currently trading down about 0.8% on the day.