In trading on Thursday, shares of the SPDR S&P Regional Banking ETF (Symbol: KRE) entered into oversold territory, changing hands as low as $43.30 per share. We define oversold territory using the Relative Strength Index, or RSI, which is a technical analysis indicator used to measure momentum on a scale of zero to 100. A stock is considered to be oversold if the RSI reading falls below 30.
In the case of SPDR S&P Regional Banking, the RSI reading has hit 29.6 — by comparison, the RSI reading for the S&P 500 is currently 55.1.
A bullish investor could look at KRE’s 29.6 reading as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side.
Looking at a chart of one year performance (below), KRE’s low point in its 52 week range is $41.28 per share, with $70.745 as the 52 week high point — that compares with a last trade of $43.48. SPDR S&P Regional Banking shares are currently trading off about 2.3% on the day.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Image and article originally from www.nasdaq.com. Read the original article here.