In trading on Monday, shares of the Invesco China Technology ETF (Symbol: CQQQ) entered into oversold territory, changing hands as low as $59.23 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 Invesco China Technology, the RSI reading has hit 27.9 — by comparison, the RSI reading for the S&P 500 is currently 41.8.
A bullish investor could look at CQQQ’s 27.9 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), CQQQ’s low point in its 52 week range is $59.23 per share, with $108.61 as the 52 week high point — that compares with a last trade of $59.70. Invesco China Technology shares are currently trading down about 2.8% on the day.
