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IShares Barclays MBS Bond Fund (MBB) Enters Oversold Territory

Tickers in this article: MBB
In trading on Monday, shares of the iShares Barclays MBS Bond Fund ETF entered into oversold territory, changing hands as low as $107.21 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 Barclays MBS Bond Fund, the RSI reading has hit 28.9 — by comparison, the RSI reading for the S&P 500 is currently 72.4.

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A bullish investor could look at MBB's 28.9 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), MBB's low point in its 52 week range is $107.21 per share, with $109.46 as the 52 week high point — that compares with a last trade of $107.21. iShares Barclays MBS Bond Fund shares are currently trading off about 0.2% on the day.

iShares Barclays MBS Bond Fund 1 Year Performance Chart