In trading on Monday, shares of the Invesco QQQ ETF (Symbol: QQQ) entered into oversold territory, changing hands as low as $171.405 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 29.97 - by comparison, the RSI reading for the S&P 500 is currently 33.1. A bullish investor could look at QQQ's 29.97 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 $143.46 per share, with $191.32 as the 52 week high point - that compares with a last trade of $172.54. Invesco QQQ shares are currently trading off about 0.7% 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.