In trading on Wednesday, shares of the iShares— iBonds— Dec 2023 Term Corporate ETF (Symbol: IBDO) entered into oversold territory, changing hands as low as $25.79 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 iShares— iBonds— Dec 2023 Term Corporate, the RSI reading has hit 28.1 — by comparison, the RSI reading for the S&P 500 is currently 69.3. A bullish investor could look at IBDO's 28.1 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), IBDO's low point in its 52 week range is $25.79 per share, with $26.34 as the 52 week high point — that compares with a last trade of $25.80. iShares— iBonds— Dec 2023 Term Corporate shares are currently trading off about 0.1% on the day.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
