In trading on Thursday, shares of the iShares S&P Global Healthcare Sector Index Fund ETF (NYSE:IXJ) entered into oversold territory, changing hands as low as $57.97 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 S&P Global Healthcare Sector Index Fund, the RSI reading has hit 28.7 — by comparison, the RSI reading for the S&P 500 is currently 24.7.
A bullish investor could look at IXJ's 28.7 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), IXJ's low point in its 52 week range is $49.32 per share, with $60.92 as the 52 week high point — that compares with a last trade of $58.08. iShares S&P Global Healthcare Sector Index Fund shares are currently trading off about 0.7% on the day.
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