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CMBS Crowded With Sellers

Tickers in this article: CMBS
In trading on Monday, shares of the iShares CMBS ETF entered into oversold territory, changing hands as low as $50.50 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 CMBS, the RSI reading has hit 29.7 — by comparison, the RSI reading for the S&P 500 is currently 55.1.

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A bullish investor could look at CMBS'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), CMBS's low point in its 52 week range is $49.78 per share, with $52.53 as the 52 week high point — that compares with a last trade of $50.50. iShares CMBS shares are currently trading off about 0.2% on the day.

iShares CMBS 1 Year Performance Chart