On Monday, shares of the iShares U.S. Healthcare ETF (Symbol: IYH) fell into oversold territory, trading as low as $59.21. The term “oversold” is often defined by the Relative Strength Index (RSI), a popular tool in technical analysis that gauges market momentum on a scale from zero to 100. If a stock’s RSI dips below 30, it signals that it may be oversold.
For iShares U.S. Healthcare, the RSI currently stands at 29.5. In contrast, the S&P 500 index has a much healthier RSI of 63.4, suggesting a divergence in performance between the two.
Investors with a bullish outlook might interpret IYH’s 29.5 RSI as a potential indicator that the recent wave of selling could be running out of steam. Such conditions could spark interest in identifying strategic buying opportunities.
Evaluating the ETF’s annual performance reveals that its 52-week low is $55.618, while its high reached $66.59. Currently, shares are trading at $59.12, reflecting a decline of approximately 0.8% for the day.
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The views and opinions expressed herein are those of the author and do not necessarily reflect the views of Nasdaq, Inc.
