The RSI Indicator and Oversold Territory
On a Friday trading session, the iShares MSCI USA Momentum Factor ETF (Symbol: MTUM) experienced a dip, reaching $172.75 per share and entering into oversold territory. Oversold status is determined using the Relative Strength Index (RSI), a technical analysis tool gauging momentum on a scale of zero to 100. A stock is deemed oversold if the RSI reading falls below 30.
Notably, the RSI reading for iShares MSCI USA Momentum Factor ETF currently stands at 29.7, contrasting with the S&P 500’s RSI of 32.0. This may be considered by optimistic investors as an indicator that the recent wave of selling pressure is tapering off, potentially signaling opportunities for entry on the buy side.
Performance Snapshot
Observing a year-long performance chart, the lowest point within MTUM’s 52-week range is $134.915 per share, while the highest point is $190.63. In contrast, the latest trade occurred at $172.83 per share, with iShares MSCI USA Momentum Factor ETF shares exhibiting a 3% decline on the day.
Free Report: Top 8%+ Dividends (paid monthly)
Find out what 9 other oversold stocks you need to know about »
Insightful Resources
Delve into Past Earnings
Explore WXS Insider Buying Trends
Watch Engaging HQL Videos
The opinions expressed here are solely those of the author and do not necessarily align with those of Nasdaq, Inc.