In trading on Tuesday, shares of the iShares ESG Aware MSCI USA Small-Cap ETF (Symbol: ESML) entered into oversold territory, changing hands as low as $35.99 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 ESG Aware MSCI USA Small-Cap, the RSI reading has hit 29.4 — by comparison, the RSI reading for the S&P 500 is currently 24.4.
A bullish investor could look at ESML’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), ESML’s low point in its 52 week range is $35.37 per share, with $43.05 as the 52 week high point — that compares with a last trade of $36.40. iShares ESG Aware MSCI USA Small-Cap shares are currently trading off about 2% 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.