In trading on Friday, shares of the iShares MSCI Global Gold Miners ETF (RING) entered into oversold territory, changing hands as low as $9.80 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 iShares MSCI Global Gold Miners, the RSI reading has hit 29.5 — by comparison, the RSI reading for the S&P 500 is currently 58.9. A bullish investor could look at RING's 29.5 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), RING's low point in its 52 week range is $9.14 per share, with $22.46 as the 52 week high point — that compares with a last trade of $9.80. iShares MSCI Global Gold Miners shares are currently trading off about 2.1% on the day.
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