Materials Select Sector SPDR Fund ETF Dips into Oversold Territory
Investor Interest May Rise as Stock Faces Buying Opportunities
On Friday, shares of the Materials Select Sector SPDR Fund ETF (Symbol: XLB) reached an oversold condition, trading as low as $89.0001 per share. This oversold status is determined by the Relative Strength Index (RSI), a tool that measures momentum on a scale from zero to 100. A stock is typically considered oversold when its RSI falls below 30.
The current RSI for the Materials Select Sector SPDR Fund stands at 27.4, whereas the S&P 500 index is showing a healthier RSI of 60.5. A bullish investor might interpret XLB’s low RSI as a signal that selling pressure is easing, suggesting that it could be a good time to look for buying opportunities.
Examining the one-year performance chart (shown below), XLB’s lowest price over the past 52 weeks is $80.735 per share, with its highest point reaching $97.87. The latest trading price of $89.09 indicates that the ETF is down approximately 1% on the day.
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The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
