Shares of QQQ Now Oversold

In trading on Monday, shares of the Invesco QQQ ETF (Symbol: QQQ) entered into oversold territory, changing hands as low as $477.21 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 QQQ, the RSI reading has hit 28.6 — by comparison, the RSI reading for the S&P 500 is currently 31.0. A bullish investor could look at QQQ's 28.6 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), QQQ's low point in its 52 week range is $413.07 per share, with $540.81 as the 52 week high point — that compares with a last trade of $477.33. Invesco QQQ shares are currently trading off about 2.8% 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.