Shares of SPLB Now Oversold
ETF Channel Staff - Monday, October 2, 4:01 PMIn trading on Monday, shares of the SPDR Portfolio Long Term Corporate Bond ETF (SPLB) entered into oversold territory, changing hands as low as $20.8312 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 SPDR Portfolio Long Term Corporate Bond, the RSI reading has hit 28.9 — by comparison, the RSI reading for the S&P 500 is currently 35.5.
A bullish investor could look at SPLB's 28.9 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), SPLB's low point in its 52 week range is $20.34 per share, with $24.65 as the 52 week high point — that compares with a last trade of $20.86. SPDR Portfolio Long Term Corporate Bond shares are currently trading off about 1.8% on the day.
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