In trading on Thursday, shares of the Guggenheim BulletShares 2015 Corporate Bond ETF (BSCF) entered into oversold territory, changing hands as low as $21.58 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 2015 Corporate Bond, the RSI reading has hit 28.8 — by comparison, the RSI reading for the S&P 500 is currently 44.2.
A bullish investor could look at BSCF's 28.8 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), BSCF's low point in its 52 week range is $21.41 per share, with $21.96 as the 52 week high point — that compares with a last trade of $21.72. Guggenheim BulletShares 2015 Corporate Bond shares are currently trading down about 0.4% on the day.