KXI Crowded With Sellers

In trading on Thursday, shares of the iShares Global Consumer Staples ETF ( KXI) entered into oversold territory, changing hands as low as $89.34 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 Global Consumer Staples, the RSI reading has hit 28.9 — by comparison, the RSI reading for the S&P 500 is currently 59.1.

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

A bullish investor could look at KXI's 28.9 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), KXI's low point in its 52 week range is $86.09 per share, with $101.62 as the 52 week high point — that compares with a last trade of $89.47. iShares Global Consumer Staples shares are currently trading off about 1.3% on the day.

iShares Global Consumer Staples 1 Year Performance Chart

If you liked this article you might like

KXI Crosses Above Key Moving Average Level

KXI Crosses Above Key Moving Average Level

IShares Global Consumer Staples (KXI) Shares Cross Below 200 DMA

IShares Global Consumer Staples (KXI) Shares Cross Below 200 DMA