IDuring Friday’s trading, shares of ETF Invesco Dynamic Leisure and Entertainment (Symbol: PEJ) entered oversold territory, changing hands as low as $40.78 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 Invesco Dynamic Leisure and Entertainment, the RSI reading reached 29.4 – in comparison, the RSI reading for the S&P 500 is currently 36.9. A bullish investor might take the 29.4 PJD reading as a sign that the recent strong selloffs are running out and starting to look for entry point opportunities on the buy side.
Looking at a one-year performance chart (below), PEJ’s low point in its 52-week range is $40.78 per share, with $54.615 as its 52-week high – compare with a last transaction of $41.30. Shares of Invesco Dynamic Leisure and Entertainment are currently trading around 2.8% higher 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.