IDuring Monday’s trading, shares of ETF JAAA (ticker: JAAA) entered oversold territory, changing hands as low as $49.2162 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 JAAA, the RSI reading reached 24.9 – in comparison, the RSI reading for the S&P 500 is currently 36.0. A bullish investor might take the 24.9 reading from JAAA 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), JAAA’s low point in its 52-week range is $49.2162 per share, with $51.40 as its 52-week high – compare with a final trade of $49.23. JAAA shares are currently trading around 0.5% lower 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.
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