Shares of ZMLP Now Oversold

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.

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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

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