Shares of XSLV Now Oversold

In trading on Tuesday, shares of the Invesco S&P SmallCap Low Volatility ETF (Symbol: XSLV) entered into oversold territory, changing hands as low as $47.94 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 Invesco S&P SmallCap Low Volatility, the RSI reading has hit 28.4 — by comparison, the RSI reading for the S&P 500 is currently 24.4.

A bullish investor could look at XSLV’s 28.4 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), XSLV’s low point in its 52 week range is $40.87 per share, with $52.89 as the 52 week high point — that compares with a last trade of $48.43. Invesco S&P SmallCap Low Volatility shares are currently trading down about 2.1% on the day.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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