Shares of IESM Now Oversold

In trading on Wednesday, shares of the iShares Enhanced U.S. Small-Cap ETF ( IESM) entered into oversold territory, changing hands as low as $28.43 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 Enhanced U.S. Small-Cap, the RSI reading has hit 28.9 — by comparison, the RSI reading for the S&P 500 is currently 33.5.

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A bullish investor could look at IESM's 28.9 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), IESM's low point in its 52 week range is $24.40 per share, with $30.45 as the 52 week high point — that compares with a last trade of $28.43. iShares Enhanced U.S. Small-Cap shares are currently trading off about 0.5% on the day.

iShares Enhanced U.S. Small-Cap 1 Year Performance Chart