DBO Crowded With Sellers

In trading on Tuesday, shares of the DB Oil Fund ETF (DBO) entered into oversold territory, changing hands as low as $24.37 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 DB Oil Fund, the RSI reading has hit 29.6 — by comparison, the RSI reading for the S&P 500 is currently 54.6.

START SLIDESHOW:
Find out what 9 other oversold stocks you need to know about »

A bullish investor could look at DBO's 29.6 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), DBO's low point in its 52 week range is $22.62 per share, with $30.65 as the 52 week high point — that compares with a last trade of $24.47. DB Oil Fund shares are currently trading off about 0.2% on the day.

DB Oil Fund 1 Year Performance Chart

null

More from Stocks

Jim Cramer: Advanced Micro Devices CEO Lisa Su Saved the Company

Jim Cramer: Advanced Micro Devices CEO Lisa Su Saved the Company

Jim Cramer Just Spoke to Larry Kudlow About the China Trade Negotiations

Jim Cramer Just Spoke to Larry Kudlow About the China Trade Negotiations

Intel's First-Quarter Earnings Report: 4 Key Metrics to Pay Attention To

Intel's First-Quarter Earnings Report: 4 Key Metrics to Pay Attention To

UPS Has Plans to Deliver Shareholders a Higher Stock Price

UPS Has Plans to Deliver Shareholders a Higher Stock Price

Your Questions Answered on How to Play Earnings Season

Your Questions Answered on How to Play Earnings Season