Guggenheim BulletShares 2020 High Yield Corporate Bond (BSJK) Enters Oversold Territory

In trading on Monday, shares of the Guggenheim BulletShares 2020 High Yield Corporate Bond ETF ( BSJK) entered into oversold territory, changing hands as low as $25.22 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 Guggenheim BulletShares 2020 High Yield Corporate Bond, the RSI reading has hit 27.6 — by comparison, the RSI reading for the S&P 500 is currently 66.1.

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A bullish investor could look at BSJK's 27.6 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), BSJK's low point in its 52 week range is $25.22 per share, with $26.69 as the 52 week high point — that compares with a last trade of $25.31. Guggenheim BulletShares 2020 High Yield Corporate Bond shares are currently trading down about 0.6% on the day.