JKJ Crosses Critical Technical Indicator
ETF Channel Staff - Thursday, November 15, 4:01 PMIn trading on Thursday, shares of the iShares Morningstar Small Core Index Fund ETF (JKJ) entered into oversold territory, changing hands as low as $87.191 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 iShares Morningstar Small Core Index Fund, the RSI reading has hit 29.4 — by comparison, the RSI reading for the S&P 500 is currently 27.0.
A bullish investor could look at JKJ's 29.4 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), JKJ's low point in its 52 week range is $75.67 per share, with $97.85 as the 52 week high point — that compares with a last trade of $87.78. iShares Morningstar Small Core Index Fund shares are currently trading off about 0.7% on the day.
Special Offer: Find out what Dave Moenning is holding in the ETF Channel Flexible Growth Investment Portfolio with 30 Days Free.