KRBN Enters Oversold Territory
ETF Channel Staff - Thursday, May 25, 10:52 AMIn trading on Thursday, shares of the KRBN ETF (KRBN) entered into oversold territory, changing hands as low as $36.61 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 KRBN, the RSI reading has hit 29.0 — by comparison, the RSI reading for the S&P 500 is currently 50.5.
A bullish investor could look at KRBN's 29.0 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), KRBN's low point in its 52 week range is $34.64 per share, with $51.88 as the 52 week high point — that compares with a last trade of $36.78. KRBN shares are currently trading down about 1.2% on the day.
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