AMZA Crosses Critical Technical Indicator

In trading on Wednesday, shares of the InfraCap MLP ETF (Symbol: AMZA) entered into oversold territory, changing hands as low as $46.7232 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 InfraCap MLP, the RSI reading has hit 27.0 — by comparison, the RSI reading for the S&P 500 is currently 49.2. A bullish investor could look at AMZA's 27.0 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.