REET Crosses Critical Technical Indicator

In trading on Wednesday, shares of the iShares Global REIT ETF ( REET) entered into oversold territory, changing hands as low as $25.55 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 REIT, the RSI reading has hit 29.7 — by comparison, the RSI reading for the S&P 500 is currently 44.2.

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A bullish investor could look at REET's 29.7 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), REET's low point in its 52 week range is $23.66 per share, with $28.08 as the 52 week high point — that compares with a last trade of $25.57. iShares Global REIT shares are currently trading off about 0.3% on the day.

iShares Global REIT 1 Year Performance Chart