RWK Crosses Critical Technical Indicator
ETF Channel Staff - Friday, September 30, 6:32 PMIn trading on Friday, shares of the Invesco S&P MidCap 400 Revenue ETF (RWK) entered into oversold territory, changing hands as low as $74.8385 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 S&P MidCap 400 Revenue, the RSI reading has hit 29.5 — by comparison, the RSI reading for the S&P 500 is currently 25.6.
A bullish investor could look at RWK's 29.5 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), RWK's low point in its 52 week range is $74.2201 per share, with $97.33 as the 52 week high point — that compares with a last trade of $75.08. Invesco S&P MidCap 400 Revenue shares are currently trading down about 0.6% on the day.
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