Shares of MDIV Now Oversold

In trading on Thursday, shares of the Multi-Asset Diversified Income Index Fund ETF (MDIV) entered into oversold territory, changing hands as low as $20.81 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 Multi-Asset Diversified Income Index Fund, the RSI reading has hit 29.97 — by comparison, the RSI reading for the S&P 500 is currently 43.9.

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

A bullish investor could look at MDIV's 29.97 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), MDIV's low point in its 52 week range is $20.65 per share, with $22.46 as the 52 week high point — that compares with a last trade of $20.86. Multi-Asset Diversified Income Index Fund shares are currently trading off about 0.4% on the day.

Multi-Asset Diversified Income Index Fund 1 Year Performance Chart

More from Stocks

Stocks Rise, Nasdaq Jumps as Facebook Rallies

Stocks Rise, Nasdaq Jumps as Facebook Rallies

6 Key Numbers to Look for When Amazon Reports First-Quarter Earnings

6 Key Numbers to Look for When Amazon Reports First-Quarter Earnings

Earnings, Earnings and More Earnings - Your Midweek Update From Facebook to Ford

Earnings, Earnings and More Earnings - Your Midweek Update From Facebook to Ford

Facebook Just Announced a Major Share Buyback Program

Facebook Just Announced a Major Share Buyback Program

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

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