QUAL Crosses Critical Technical Indicator
ETF Channel Staff - Tuesday, September 26, 5:17 PMIn trading on Tuesday, shares of the iShares MSCI USA Quality Factor ETF (QUAL) entered into oversold territory, changing hands as low as $130.56 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 MSCI USA Quality Factor, the RSI reading has hit 29.4 — by comparison, the RSI reading for the S&P 500 is currently 30.0.
A bullish investor could look at QUAL's 29.4 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), QUAL's low point in its 52 week range is $101.60 per share, with $140.7978 as the 52 week high point — that compares with a last trade of $130.62. iShares MSCI USA Quality Factor shares are currently trading down about 1.8% on the day.
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