iShares iBoxx $ Investment Grade Corporate Bond (LQD) Enters Oversold Territory
ETF Channel Staff - Tuesday, January 18, 11:12 AMIn trading on Tuesday, shares of the iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD) entered into oversold territory, changing hands as low as $128.16 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 iShares iBoxx $ Investment Grade Corporate Bond, the RSI reading has hit 28.2 — by comparison, the RSI reading for the S&P 500 is currently 43.9.
A bullish investor could look at LQD'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), LQD's low point in its 52 week range is $127.91 per share, with $136.78 as the 52 week high point — that compares with a last trade of $128.18. iShares iBoxx $ Investment Grade Corporate Bond shares are currently trading off about 0.7% on the day.
Special Offer: Receive our best dividend ideas directly to your inbox each afternoon with the Dividend Channel Premium Newsletter