SPDR Bloomberg Barclays Mortgage Backed Bond Getting Very Oversold

In trading on Thursday, shares of the SPDR Bloomberg Barclays Mortgage Backed Bond ETF (MBG) entered into oversold territory, changing hands as low as $26.6135 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 Bloomberg Barclays Mortgage Backed Bond, the RSI reading has hit 29.3 — by comparison, the RSI reading for the S&P 500 is currently 61.9.

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A bullish investor could look at MBG's 29.3 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), MBG's low point in its 52 week range is $26.6135 per share, with $27.36 as the 52 week high point — that compares with a last trade of $26.61. SPDR Bloomberg Barclays Mortgage Backed Bond shares are currently trading off about 0.7% on the day.

SPDR Bloomberg Barclays Mortgage Backed Bond 1 Year Performance Chart

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