IHE Crosses Critical Technical Indicator
ETF Channel Staff - Thursday, May 25, 4:28 PMIn trading on Thursday, shares of the iShares U.S. Pharmaceuticals ETF (IHE) entered into oversold territory, changing hands as low as $171.09 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 U.S. Pharmaceuticals, the RSI reading has hit 29.3 — by comparison, the RSI reading for the S&P 500 is currently 53.4.
A bullish investor could look at IHE's 29.3 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), IHE's low point in its 52 week range is $166.99 per share, with $197.28 as the 52 week high point — that compares with a last trade of $172.58. iShares U.S. Pharmaceuticals shares are currently trading off about 1.2% on the day.
Special Offer: Join the income investing conversation on ValueForum.com with a special Seven Days for Seven Dollars invitation.