SPDR S&P Global Natural Resources Getting Very Oversold

In trading on Friday, shares of the SPDR S&P Global Natural Resources ETF ( GNR) entered into oversold territory, changing hands as low as $50.74 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 SPDR S&P Global Natural Resources, the RSI reading has hit 29.6 — by comparison, the RSI reading for the S&P 500 is currently 52.5.

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A bullish investor could look at GNR'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), GNR's low point in its 52 week range is $46.27 per share, with $53.83 as the 52 week high point — that compares with a last trade of $50.74. SPDR S&P Global Natural Resources shares are currently trading down about 0.6% on the day.

SPDR S&P Global Natural Resources 1 Year Performance Chart

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