In trading on Friday, shares of the iShares MSCI EMU ETF
(Symbol: EZU) entered into oversold territory, changing hands as
low as $39.58 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
In the case of iShares MSCI EMU, the RSI reading has hit 29.9 - by
comparison, the RSI reading for the S&P 500 is currently 34.3.
A bullish investor could look at EZU's 29.9 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), EZU's low point
in its 52 week range is $34.63 per share, with $44.19 as the 52
week high point - that compares with a last trade of $39.70.
iShares MSCI EMU shares are currently trading down about 0.2% on
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