In trading on Wednesday, shares of the ARK Autonomous Technology & Robotics ETF (Symbol: ARKQ) entered into oversold territory, changing hands as low as $68.41 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 ARK Autonomous Technology & Robotics, the RSI reading has hit 29.8 — by comparison, the RSI reading for the S&P 500 is currently 40.7.
A bullish investor could look at ARKQ’s 29.8 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), ARKQ’s low point in its 52 week range is $68.39 per share, with $101.11 as the 52 week high point — that compares with a last trade of $68.48. ARK Autonomous Technology & Robotics shares are currently trading off about 0.4% on the day.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.