Materials Select Sector ETF Shows Signs of Overselling

This Tuesday, the Materials Select Sector SPDR Fund ETF (Symbol: XLB) dropped into oversold territory, trading as low as $83.275 per share. Oversold territory is identified using the Relative Strength Index (RSI), a tool that gauges momentum on a scale from zero to 100. A stock is deemed oversold when its RSI value dips below 30.

Currently, XLB’s RSI score stands at 29.5, whereas the S&P 500’s RSI is considerably higher at 46.2. This low RSI reading may signal to bullish investors that the recent selling pressure could be running out of steam, prompting them to consider potential buying opportunities.

Examining its recent performance, the Materials Select Sector SPDR Fund has a 52-week low of $80.735 per share and a high of $97.87. As of the last transaction, shares were trading at $83.40, reflecting a modest decline of about 0.6% for the day.

Explore other oversold stocks to watch »

Also see:

• Mergers and Acquisitions
• REXR Insider Buying
• Top Ten Hedge Funds Holding RKLB

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