CAFX Crowded With Sellers

In trading on Wednesday, shares of the Congress Intermediate Bond ETF (Symbol: CAFX) entered into oversold territory, changing hands as low as $24.1493 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 Congress Intermediate Bond, the RSI reading has hit 29.97 — by comparison, the RSI reading for the S&P 500 is currently 42.6. A bullish investor could look at CAFX's 29.97 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.