VanEck Semiconductor ETF Hits Oversold Levels Amid Heavy Trading

In Tuesday’s trading session, the VanEck Semiconductor ETF (Symbol: SMH) fell into oversold territory, with shares dropping to a low of $210.46. Oversold conditions are defined using the Relative Strength Index (RSI), a key technical indicator that measures momentum on a scale from zero to 100. A stock is deemed oversold when the RSI reading falls below 30.

For VanEck Semiconductor, the latest RSI reading stands at 29.99. In contrast, the S&P 500’s RSI is currently at 26.9, indicating a broader market weakness. A bullish investor may view SMH’s RSI of 29.99 as a signal that the recent wave of selling is nearing its conclusion, which could present potential buying opportunities.

Examining the one-year performance of SMH (see chart below), the ETF’s low point during the past 52 weeks was $198.44 per share, while its high reached $283.07. Currently, the last trade price for VanEck Semiconductor shares is $211.68, reflecting a decline of approximately 1.8% for the day.

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