CGMS Crosses Critical Technical Indicator

In trading on Friday, shares of the Capital Group U.S. Multi-Sector Income ETF (Symbol: CGMS) entered into oversold territory, changing hands as low as $26.49 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 Capital Group U.S. Multi-Sector Income, the RSI reading has hit 29.7 — by comparison, the RSI reading for the S&P 500 is currently 54.9.

A bullish investor could look at CGMS'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), CGMS's low point in its 52 week range is $26.49 per share, with $27.99 as the 52 week high point — that compares with a last trade of $26.56. Capital Group U.S. Multi-Sector Income shares are currently trading trading flat on the day. Find out what 9 other oversold stocks you need to know about » Further CGMS Research: CGMS Videos Funds Holding CGMS Largest Discount Preferreds

In the case of Capital Group U.S. Multi-Sector Income, the RSI reading has hit 29.7 — by comparison, the RSI reading for the S&P 500 is currently 54.9.

A bullish investor could look at CGMS'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), CGMS's low point in its 52 week range is $26.49 per share, with $27.99 as the 52 week high point — that compares with a last trade of $26.56. Capital Group U.S. Multi-Sector Income shares are currently trading trading flat on the day.

Find out what 9 other oversold stocks you need to know about »