Invesco DB Oil Fund (DBO) Enters Oversold Territory
ETF Channel Staff - Thursday, January 23, 11:05 AMIn trading on Thursday, shares of the Invesco DB Oil Fund ETF (DBO) entered into oversold territory, changing hands as low as $9.62 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 Oil Fund, the RSI reading has hit 28.8 — by comparison, the RSI reading for the S&P 500 is currently 72.3.
A bullish investor could look at DBO's 28.8 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), DBO's low point in its 52 week range is $8.91 per share, with $11.20 as the 52 week high point — that compares with a last trade of $9.64. Invesco DB Oil Fund shares are currently trading down about 3.1% on the day.
Special Offer: Join the income investing conversation on ValueForum.com with a special Seven Days for Seven Dollars invitation.