GEX Crowded With Sellers

In trading on Wednesday, shares of the Global Alternative Energy ETF ( GEX) entered into oversold territory, changing hands as low as $49.71 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 Global Alternative Energy, the RSI reading has hit 26.9 — by comparison, the RSI reading for the S&P 500 is currently 36.9.

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A bullish investor could look at GEX's 26.9 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), GEX's low point in its 52 week range is $44.16 per share, with $55.92 as the 52 week high point — that compares with a last trade of $49.71. Global Alternative Energy shares are currently trading off about 1.6% on the day.

Global Alternative Energy 1 Year Performance Chart

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