In trading on Wednesday, shares of the BondBloxx USD High Yield Bond Financial & REIT Sector ETF (Symbol: XHYF) entered into oversold territory, changing hands as low as $36.62 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 BondBloxx USD High Yield Bond Financial & REIT Sector, the RSI reading has hit 27.2 — by comparison, the RSI reading for the S&P 500 is currently 38.8.
A bullish investor could look at XHYF’s 27.2 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), XHYF’s low point in its 52 week range is $35.9742 per share, with $39.85 as the 52 week high point — that compares with a last trade of $36.62. BondBloxx USD High Yield Bond Financial & REIT Sector shares are currently trading down about 0.5% on the day.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
