In trading on Tuesday, shares of the iShares GSCI Commodity Dynamic Roll Strategy ETF (Symbol: COMT) entered into oversold territory, changing hands as low as $34.4206 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 GSCI Commodity Dynamic Roll Strategy, the RSI reading has hit 28.3 — by comparison, the RSI reading for the S&P 500 is currently 53.1.
A bullish investor could look at COMT’s 28.3 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), COMT’s low point in its 52 week range is $25.33 per share, with $38.36 as the 52 week high point — that compares with a last trade of $34.62. iShares GSCI Commodity Dynamic Roll Strategy shares are currently trading down about 1.8% 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.