SPDR S&P International Materials Sector (IRV) Enters Oversold Territory

In trading on Wednesday, shares of the SPDR S&P International Materials Sector ETF ( IRV) entered into oversold territory, changing hands as low as $21.49 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.

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A bullish investor could look at IRV's 28.2 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), IRV's low point in its 52 week range is $20.39 per share, with $25.75 as the 52 week high point — that compares with a last trade of $21.49. SPDR S&P International Materials Sector shares are currently trading off about 2.1% on the day.