FNIO Crosses Critical Technical Indicator

In trading on Friday, shares of the iShares Industrial/Office Real Estate Capped ETF (FNIO) entered into oversold territory, changing hands as low as $32.21 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 Industrial/Office Real Estate Capped, the RSI reading has hit 28.2 — by comparison, the RSI reading for the S&P 500 is currently 49.3.

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A bullish investor could look at FNIO'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), FNIO's low point in its 52 week range is $28.32 per share, with $34.70 as the 52 week high point — that compares with a last trade of $32.34. iShares Industrial/Office Real Estate Capped shares are currently trading down about 3.3% on the day.

iShares Industrial/Office Real Estate Capped 1 Year Performance Chart

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