The Communication Services Select Sector SPDR Fund Getting Very Oversold

In trading on Thursday, shares of the The Communication Services Select Sector SPDR Fund ETF (Symbol: XLC) entered into oversold territory, changing hands as low as $94.62 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 The Communication Services Select Sector SPDR Fund, the RSI reading has hit 29.8 — by comparison, the RSI reading for the S&P 500 is currently 28.4. A bullish investor could look at XLC's 29.8 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), XLC's low point in its 52 week range is $76.48 per share, with $105.58 as the 52 week high point — that compares with a last trade of $94.94. The Communication Services Select Sector SPDR Fund shares are currently trading off about 1.9% on the day.

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Also see:

• Top Ten Hedge Funds Holding GTN
• Teradyne Technical Analysis
• Institutional Holders of CISO

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.