From ETF Channel: In trading on Thursday, shares of the Oil Services ETF (Symbol: OIH) entered into oversold territory.
Changing hands as low as $18.42 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 Oil Services, the RSI reading has hit 29.7 — by comparison, the RSI reading for the S&P 500 is currently 51.9. A bullish investor could look at OIH’s 29.7 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), OIH’s low point in its 52 week range is $17.95 per share, with $29.865 as the 52 week high point — that compares with a last trade of $18.57. Oil Services shares are currently trading off about 0.6% on the day.
The VanEck Vectors Oil Services ETF (OIH) was trading at $18.59 per share on Thursday afternoon, up $0.02 (+0.11%). Year-to-date, OIH has declined -28.64%, versus a 3.15% rise in the benchmark S&P 500 index during the same period.
This article is brought to you courtesy of ETF Channel.