International High Yield Bond Getting Very Oversold
ETF Channel Staff - Friday, March 1, 11:24 AMIn trading on Friday, shares of the International High Yield Bond ETF (IHY) entered into oversold territory, changing hands as low as $26.96 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 International High Yield Bond, the RSI reading has hit 28.2 — by comparison, the RSI reading for the S&P 500 is currently 54.3.
A bullish investor could look at IHY's 28.2 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), IHY's low point in its 52 week range is $23.03 per share, with $28.36 as the 52 week high point — that compares with a last trade of $26.98. International High Yield Bond shares are currently trading down about 0.3% on the day.
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