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Shares Of MBG Now Oversold

Tickers in this article: MBG
In trading on Friday, shares of the SPDR Barclays Mortgage Backed Bond ETF entered into oversold territory, changing hands as low as $26.94 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 SPDR Barclays Mortgage Backed Bond, the RSI reading has hit 25.7 — by comparison, the RSI reading for the S&P 500 is currently 58.8.

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A bullish investor could look at MBG's 25.7 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), MBG's low point in its 52 week range is $26.91 per share, with $28.01 as the 52 week high point — that compares with a last trade of $26.95. SPDR Barclays Mortgage Backed Bond shares are currently trading off about 0.4% on the day.

SPDR Barclays Mortgage Backed Bond 1 Year Performance Chart