Guggenheim S&P 500 Equal Weight Utilities Getting Very Oversold

In trading on Friday, shares of the Guggenheim S&P 500 Equal Weight Utilities ETF (RYU) entered into oversold territory, changing hands as low as $81.6101 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 Guggenheim S&P 500 Equal Weight Utilities, the RSI reading has hit 29.7 — by comparison, the RSI reading for the S&P 500 is currently 48.5.

A bullish investor could look at RYU'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), RYU's low point in its 52 week range is $68.03 per share, with $88.42 as the 52 week high point — that compares with a last trade of $81.91. Guggenheim S&P 500 Equal Weight Utilities shares are currently trading off about 1.9% on the day.

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