iShares Global High Yield Corporate Bond Getting Very Oversold

In trading on Thursday, shares of the iShares Global High Yield Corporate Bond ETF (GHYG) entered into oversold territory, changing hands as low as $49.335 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 High Yield Corporate Bond, the RSI reading has hit 29.6 — by comparison, the RSI reading for the S&P 500 is currently 55.5.

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

A bullish investor could look at GHYG's 29.6 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), GHYG's low point in its 52 week range is $48.50 per share, with $55.69 as the 52 week high point — that compares with a last trade of $50.00. iShares Global High Yield Corporate Bond shares are currently trading down about 0.2% on the day.

iShares Global High Yield Corporate Bond 1 Year Performance Chart

More from Stocks

Will China Save Tesla?

Will China Save Tesla?

Facebook First-Quarter Earnings Live Blog

Facebook First-Quarter Earnings Live Blog

Facebook Stock Jumps After Hours on Earnings, Revenue Beat

Facebook Stock Jumps After Hours on Earnings, Revenue Beat

Dow and S&P 500 Finish Higher Amid Strong Corporate Earnings

Dow and S&P 500 Finish Higher Amid Strong Corporate Earnings

Veteran Foreign Affairs Expert Ian Bremmer Reveals How to Price Political Risk

Veteran Foreign Affairs Expert Ian Bremmer Reveals How to Price Political Risk