TLO Crosses Critical Technical Indicator

In trading on Wednesday, shares of the SPDR Barclays Long Term Treasury ETF ( TLO) entered into oversold territory, changing hands as low as $67.015 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 SPDR Barclays Long Term Treasury, the RSI reading has hit 29.6 — by comparison, the RSI reading for the S&P 500 is currently 49.8.

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A bullish investor could look at TLO's 29.6 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), TLO's low point in its 52 week range is $64.44 per share, with $79.37 as the 52 week high point — that compares with a last trade of $67.03. SPDR Barclays Long Term Treasury shares are currently trading off about 0.9% on the day.

SPDR Barclays Long Term Treasury 1 Year Performance Chart

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