iShares U.S. Healthcare (IYH) Enters Oversold Territory
ETF Channel Staff - Thursday, May 25, 10:53 AMIn trading on Thursday, shares of the iShares U.S. Healthcare ETF (IYH) entered into oversold territory, changing hands as low as $268.52 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. Healthcare, the RSI reading has hit 27.8 — by comparison, the RSI reading for the S&P 500 is currently 50.5.
A bullish investor could look at IYH's 27.8 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), IYH's low point in its 52 week range is $247.38 per share, with $294.07 as the 52 week high point — that compares with a last trade of $268.59. iShares U.S. Healthcare shares are currently trading down about 1.3% on the day.
Special Offer: Receive our best dividend ideas directly to your inbox each afternoon with the Dividend Channel Premium Newsletter