In trading on Monday, shares of the Guggenheim BulletShares 2018 High Yield Corporate Bond ETF (BSJI) entered into oversold territory, changing hands as low as $26.6001 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 Guggenheim BulletShares 2018 High Yield Corporate Bond, the RSI reading has hit 28.6 — by comparison, the RSI reading for the S&P 500 is currently 54.7.
A bullish investor could look at BSJI's 28.6 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), BSJI's low point in its 52 week range is $24.28 per share, with $28.00 as the 52 week high point — that compares with a last trade of $26.61. Guggenheim BulletShares 2018 High Yield Corporate Bond shares are currently trading off about 0.1% on the day.