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XOVR Crosses Critical Technical Indicator

Tickers in this article: XOVR
In trading on Tuesday, shares of the SPDR BofA Merrill Lynch Crossover Corporate Bond ETF entered into oversold territory, changing hands as low as $24.99 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 BofA Merrill Lynch Crossover Corporate Bond, the RSI reading has hit 27.5 — by comparison, the RSI reading for the S&P 500 is currently 39.7.

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A bullish investor could look at XOVR's 27.5 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), XOVR's low point in its 52 week range is $24.99 per share, with $27.46 as the 52 week high point — that compares with a last trade of $24.99. SPDR BofA Merrill Lynch Crossover Corporate Bond shares are currently trading off about 2.1% on the day.

SPDR BofA Merrill Lynch Crossover Corporate Bond 1 Year Performance Chart