IShares Interest Rate Hedged High Yield Bond (HYGH) Enters Oversold Territory

In trading on Tuesday, shares of the iShares Interest Rate Hedged High Yield Bond ETF ( HYGH) entered into oversold territory, changing hands as low as $91.69 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 Interest Rate Hedged High Yield Bond, the RSI reading has hit 29.7 — by comparison, the RSI reading for the S&P 500 is currently 38.3.

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A bullish investor could look at HYGH'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), HYGH's low point in its 52 week range is $90.30 per share, with $101.34 as the 52 week high point — that compares with a last trade of $91.72. iShares Interest Rate Hedged High Yield Bond shares are currently trading down about 0.2% on the day.

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