XLB ETF Enters Oversold Territory with Notable RSI Drop

On Friday, shares of the Materials Select Sector SPDR Fund ETF (Symbol: XLB) hit oversold territory, trading as low as $78.80 per share. The Relative Strength Index (RSI), a popular technical analysis tool that measures momentum on a range of zero to 100, defines oversold conditions. A stock is regarded as oversold when its RSI falls below 30.

Currently, the RSI for the Materials Select Sector SPDR Fund stands at 25.7. For reference, the S&P 500’s RSI is slightly lower at 24.3. This situation may present a potentially bullish signal for investors. A reading of 25.7 could indicate that the significant selling pressure is waning, suggesting possible entry points for buyers.

Examining XLB’s one-year performance chart, the ETF’s lowest price over the past 52 weeks is $78.09, while its peak is $97.87. The ETF most recently traded at $78.11, reflecting a decline of approximately 5% for the day.

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