In trading on Tuesday, shares of the Zacks MLP High Income Shares ETF (ZMLP) entered into oversold territory, changing hands as low as $30.886 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 28.0 — by comparison, the RSI reading for the S&P 500 is currently 42.6.

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

A bullish investor could look at ZMLP's 28.0 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 $30.886 per share, with $43.55 as the 52 week high point — that compares with a last trade of $30.96. Zacks MLP High Income Shares shares are currently trading off about 2.6% on the day.

Zacks MLP High Income Shares 1 Year Performance Chart

More from Stocks

Stocks Edge Lower on US-China Trade Concerns as Economic Growth Continues to Sag

Stocks Edge Lower on US-China Trade Concerns as Economic Growth Continues to Sag

Logitech Beats Estimates in Fiscal Q3, Raises Profit Outlook

Logitech Beats Estimates in Fiscal Q3, Raises Profit Outlook

Apple to Switch to OLED Display for iPhone XR Starting in 2020 - Report

Apple to Switch to OLED Display for iPhone XR Starting in 2020 - Report

Can Palo Alto Networks Rally 23%

Can Palo Alto Networks Rally 23%

IBM Shares Jump After Beating Earnings and Guidance Expectations

IBM Shares Jump After Beating Earnings and Guidance Expectations