GVI breaks through critical technical indicator

IDuring Thursday’s session, shares of the iShares Intermediate Government/Credit Bond ETF (Symbol: GVI) entered oversold territory, changing hands as low as $107.2716 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 oversold if the RSI reading falls below 30.

In the case of iShares Intermediate Government/Credit Bond, the RSI reading reached 29.1 โ€“ in comparison, the RSI reading for the S&P 500 is currently 54.4. A bullish investor might take the 29.1 reading from GVI as a sign that the recent selloff is running out of steam and starting to look for entry point opportunities on the buy side.

Looking at a one-year performance chart (below), GVI’s low point in its 52-week range is $107.14 per share, with $117.23 as its 52-week high โ€“ compare with a final trade of $107.33. iShares Intermediate Government/Credit Bond shares are currently trading around 0.1% lower on the day.

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