In trading on Friday, shares of the Guggenheim Solar ETF (TAN) entered into oversold territory, changing hands as low as $41.84 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 Guggenheim Solar, the RSI reading has hit 29.4 — by comparison, the RSI reading for the S&P 500 is currently 51.3. A bullish investor could look at TAN's 29.4 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), TAN's low point in its 52 week range is $31.77 per share, with $50.00 as the 52 week high point — that compares with a last trade of $42.04. Guggenheim Solar shares are currently trading down about 1.3% on the day.
HOST // Robert Powell
Retirement Planning Event
More from Stocks
Global Stocks Slump on Growth Concerns; US Treasury Yield Curve Remains Inverted
Global fell heavily across the board Monday as investors extended equity market declines following last week's sharp-selloff amid concerns over the strength of the world economy and the first inversion of the U.s. Treasury yield curve in more than a decade.
Jim Cramer: There Are More Negatives in Play in This Market Than the Yield Curve
Taken together they create a worrisome picture, one that can explain why it wasn't just the banks that fell on the inversion news.
As the Game Streaming Wars Begin,Twitch Is Looking Like Amazon's Secret Weapon
With Google and Microsoft planning competing game streaming services, the market for games is about to get even more interesting. That's exactly why Amazon's Twitch deserves more of your attention.
Amazon's Private Label Efforts Show Why Its Stock Is a Buy
With the addition of skin care last week, Amazon now has 138 private labels competing against its partners. It might only be the beginning of its category domination.