LABU Getting Very Oversold
ETF Channel Staff - Monday, September 26, 4:15 PMIn trading on Monday, shares of the LABU ETF (LABU) entered into oversold territory, changing hands as low as $6.10 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 LABU, the RSI reading has hit 29.0 — by comparison, the RSI reading for the S&P 500 is currently 26.2.
A bullish investor could look at LABU's 29.0 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), LABU's low point in its 52 week range is $4.06 per share, with $66.7468 as the 52 week high point — that compares with a last trade of $6.12. LABU shares are currently trading off about 4.1% on the day.
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