IXC Crosses Critical Technical Indicator

In trading on Wednesday, shares of the iShares Global Energy ETF (IXC) entered into oversold territory, changing hands as low as $36.08 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 Global Energy, the RSI reading has hit 27.6 — by comparison, the RSI reading for the S&P 500 is currently 57.1.

START SLIDESHOW:
Find out what 9 other oversold stocks you need to know about »

A bullish investor could look at IXC'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), IXC's low point in its 52 week range is $36.08 per share, with $49.71 as the 52 week high point — that compares with a last trade of $36.23. iShares Global Energy shares are currently trading down about 2.1% on the day.

iShares Global Energy 1 Year Performance Chart

More from Stocks

GE's Exit From Dow Could Be a Blessing in Disguise, Goldman Says

GE's Exit From Dow Could Be a Blessing in Disguise, Goldman Says

Stocks Posts Gains, Nasdaq Strikes Record High

Stocks Posts Gains, Nasdaq Strikes Record High

Own Retail Stocks? This Chart Will Make You Want to Instantly Cash Out

Own Retail Stocks? This Chart Will Make You Want to Instantly Cash Out

Disney CEO Bob Iger Touts Benefits of His Firm's Deal for Fox Beyond Just Money

Disney CEO Bob Iger Touts Benefits of His Firm's Deal for Fox Beyond Just Money

2 Things Fed Chairman Jerome Powell Just Said Upset Investors

2 Things Fed Chairman Jerome Powell Just Said Upset Investors