Invesco DB Agriculture Fund (DBA) Enters Oversold Territory
ETF Channel Staff - Tuesday, June 19, 11:50 AMIn trading on Tuesday, shares of the Invesco DB Agriculture Fund ETF (DBA) entered into oversold territory, changing hands as low as $17.72 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 Invesco DB Agriculture Fund, the RSI reading has hit 25.6 — by comparison, the RSI reading for the S&P 500 is currently 56.9.
A bullish investor could look at DBA's 25.6 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), DBA's low point in its 52 week range is $17.72 per share, with $20.31 as the 52 week high point — that compares with a last trade of $17.88. Invesco DB Agriculture Fund shares are currently trading off about 2.4% on the day.
Special Offer: Join the income investing conversation on ValueForum.com with a special Seven Days for Seven Dollars invitation.