Health Care Select Sector SPDR ETF Enters Oversold Territory

In trading on Friday, shares of The Health Care Select Sector SPDR Fund ETF (Symbol: XLV) dropped into oversold territory, reaching a low of $135.53 per share. Oversold territory is defined using the Relative Strength Index (RSI), a popular technical analysis tool that measures momentum on a scale from zero to 100. A stock is considered oversold when the RSI reading falls below 30.

Currently, the RSI for The Health Care Select Sector SPDR Fund stands at 28.4, in contrast to the S&P 500, which has an RSI of 23.1. This lower reading for XLV may indicate that the recent selling pressure is beginning to wane, presenting potential buying opportunities for bullish investors.

Reviewing the performance over the past year, XLV’s minimum price for this 52-week period is $135.53, while the maximum is $159.64. As of the latest trading session, the stock price was $136.09, reflecting an approximate decline of 4.6% on the day.

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Also see:

• Stocks Crossing Below Book Value
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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.