iShares Residential Real Estate ETF Shows Signs of Overselling
Shares dip below crucial levels, signaling potential buying opportunities.
On Wednesday, the iShares Residential Real Estate ETF (Symbol: REZ) witnessed a significant drop, with shares trading as low as $81.05. This decline pushed the stock into what traders refer to as “oversold territory.” The oversold status is determined by the Relative Strength Index (RSI), a technical analysis tool that gauges market momentum on a scale from zero to 100. An RSI reading below 30 indicates that a stock may have been sold excessively.
In this instance, REZ registered an RSI reading of 29.98. For comparison, the current RSI for the S&P 500 stands at 49.5, indicating a more balanced market condition.
For bullish investors, the RSI reading of 29.98 could suggest that the recent intensive selling might soon slow down, presenting an opportunity to buy.
Analyzing the one-year performance of REZ, its lowest price over the past 52 weeks was $66.85 per share while the highest was $91.64. The most recent trade price stands at $80.64, reflecting a decline of approximately 2.5% on the trading day.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
