Shares of STIP Now Oversold

In trading on Monday, shares of the iShares 0-5 Year TIPS Bond ETF (STIP) entered into oversold territory, changing hands as low as $100.52 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 0-5 Year TIPS Bond, the RSI reading has hit 24.2 — by comparison, the RSI reading for the S&P 500 is currently 60.4.

START SLIDESHOW:
Click here to find out what 9 other oversold dividend stocks you need to know about »

A bullish investor could look at STIP's 24.2 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), STIP's low point in its 52 week range is $98.40 per share, with $101.82 as the 52 week high point — that compares with a last trade of $100.55. iShares 0-5 Year TIPS Bond shares are currently trading down about 0.2% on the day.

iShares 0-5 Year TIPS Bond 1 Year Performance Chart

More from Stocks

What Market Selloff? Dow Futures Are Popping on Sunday

What Market Selloff? Dow Futures Are Popping on Sunday

Street Stats: The Mid-Term Elections May Be a Rollercoaster Ride for Investors

Street Stats: The Mid-Term Elections May Be a Rollercoaster Ride for Investors

What You Need to Know About Facebook and Europe's New Privacy Rules

What You Need to Know About Facebook and Europe's New Privacy Rules

8 Bold Moves General Motors Could Make to Rev Up Its Battered Stock Price

8 Bold Moves General Motors Could Make to Rev Up Its Battered Stock Price

Is Your Investment Portfolio Prepared for Trade Wars, Inflation and More Trump?

Is Your Investment Portfolio Prepared for Trade Wars, Inflation and More Trump?