Zacks MLP High Income Shares (ZMLP) Enters Oversold Territory

In trading on Monday, shares of the Zacks MLP High Income Shares ETF (ZMLP) entered into oversold territory, changing hands as low as $35.7401 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 Zacks MLP High Income Shares, the RSI reading has hit 29.0 — by comparison, the RSI reading for the S&P 500 is currently 77.2.

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A bullish investor could look at ZMLP's 29.0 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), ZMLP's low point in its 52 week range is $35.31 per share, with $43.55 as the 52 week high point — that compares with a last trade of $36.21. Zacks MLP High Income Shares shares are currently trading off about 5.2% on the day.

Zacks MLP High Income Shares 1 Year Performance Chart

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