In trading on Friday, shares of the SLW Short Duration Income ETF (Symbol: SLWS) entered into oversold territory, changing hands as low as $100.63 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 SLW Short Duration Income, the RSI reading has hit 23.6 — by comparison, the RSI reading for the S&P 500 is currently 54.0.
A bullish investor could look at SLWS’s 23.6 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), SLWS’s low point in its 52 week range is $100.47 per share, with $102.29 as the 52 week high point — that compares with a last trade of $100.63. SLW Short Duration Income shares are currently trading off about 0.5% on the day.
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