Guggenheim MSCI Global Timber (CUT) Enters Oversold Territory

In trading on Friday, shares of the Guggenheim MSCI Global Timber ETF (CUT) entered into oversold territory, changing hands as low as $30 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 Guggenheim MSCI Global Timber, the RSI reading has hit 28.8 — by comparison, the RSI reading for the S&P 500 is currently 32.0.

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

A bullish investor could look at CUT's 28.8 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), CUT's low point in its 52 week range is $25.73 per share, with $33.90 as the 52 week high point — that compares with a last trade of $30.52. Guggenheim MSCI Global Timber shares are currently trading down about 1.6% on the day.

Guggenheim MSCI Global Timber 1 Year Performance Chart

More from Stocks

How Investors Can Profit by Focusing on This One Key Business Statistic

How Investors Can Profit by Focusing on This One Key Business Statistic

The Easy Money in Amazon Stock Has Been Made

The Easy Money in Amazon Stock Has Been Made

Is the Cannabis Crazy Equivalent to the Dot Com Bubble?

Is the Cannabis Crazy Equivalent to the Dot Com Bubble?

Get a Juicy 8%+ Dividend Yield With Solid Income Streams All in One Stock

Get a Juicy 8%+ Dividend Yield With Solid Income Streams All in One Stock

U.S.-Chinese Trade War Could Mash Up Apple

U.S.-Chinese Trade War Could Mash Up Apple