RSI Signals Potential Buying Opportunity for Investors
On Wednesday, shares of the iShares U.S. Real Estate ETF (Symbol: IYR) fell to $93.25, marking a moment of overselling for the fund. The Relative Strength Index (RSI), which gauges market momentum on a scale of zero to 100, indicates that a stock is oversold when the reading dips below 30.
For the iShares U.S. Real Estate ETF, the RSI is currently at 27.6, whereas the RSI for the S&P 500 stands at 49.5, highlighting a significant difference in market activity.
Investors with a bullish outlook might interpret the RSI level of 27.6 as a potential indicator that recent heavy selling is slowing down, prompting some to seek entry points for buying.
Examine the chart of IYR’s performance over the past year (see below). The ETF’s lowest point was $81.25, while its highest reached $104.04. The latest transaction recorded a price of $92.65, reflecting a decrease of about 2.9% for the day.
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