iShares Russell 2000 ETF Enters Oversold Territory Amid Selling Pressure

On Thursday, shares of the iShares Russell 2000 ETF (Symbol: IWM) fell into oversold territory, trading as low as $190.73 per share. We determine oversold conditions using the Relative Strength Index (RSI), a technical analysis tool that gauges momentum on a scale from zero to 100. A stock is labeled oversold when its RSI reading drops below 30.

For the iShares Russell 2000, the RSI registered at 27.7, compared to an RSI of 32.0 for the S&P 500.

This lower RSI figure might attract bullish investors, who could interpret the recent drops in share price as signals that selling pressure is easing. As a result, they may begin to seek entry points for purchasing the stock.

Analyzing IWM’s one-year performance reveals its 52-week low at $189.48, against a high of $244.98. Recently, the ETF traded at $189.73, reflecting a decline of approximately 5.7% on the day.

Find out what 9 other oversold stocks you need to know about »

Also see:

• TPG Videos
• Institutional Holders of BAB
• Institutional Holders of MDPL

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.