IDuring Monday’s trading, shares of the iShares US Aerospace & Defense ETF (Symbol: ITA) entered oversold territory, changing hands as low as $98.74 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 US Aerospace & Defense, the RSI reading reached 27.5 – in comparison, the RSI reading for the S&P 500 is currently 34.2. A bullish investor might take the 27.5 reading from ITA 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), the ITA’s low point in its 52-week range is $95.44 per share, with $113.67 as its 52-week high – at compare with a last transaction of $98.84. iShares US Aerospace & Defense shares are currently trading around 4.2% lower on the day.
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