iShares North American Natural Resources Getting Very Oversold

In trading on Wednesday, shares of the iShares North American Natural Resources ETF (IGE) entered into oversold territory, changing hands as low as $45.0101 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 North American Natural Resources, the RSI reading has hit 26.0 — by comparison, the RSI reading for the S&P 500 is currently 51.5.

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A bullish investor could look at IGE's 26.0 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), IGE's low point in its 52 week range is $40.53 per share, with $50.50 as the 52 week high point — that compares with a last trade of $45.19. iShares North American Natural Resources shares are currently trading off about 1.1% on the day.

iShares North American Natural Resources 1 Year Performance Chart

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