DGS Crosses Critical Technical Indicator

Shutterstock photo

In trading on Friday, shares of the WisdomTree Emerging Markets SmallCap Dividend Fund ETF (Symbol: DGS) entered into oversold territory, changing hands as low as $44.10 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 WisdomTree Emerging Markets SmallCap Dividend Fund, the RSI reading has hit 29.98 - by comparison, the RSI reading for the S&P 500 is currently 48.1. A bullish investor could look at DGS's 29.98 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), DGS's low point in its 52 week range is $39.79 per share, with $52.80 as the 52 week high point - that compares with a last trade of $44.41. WisdomTree Emerging Markets SmallCap Dividend Fund shares are currently trading off about 1.8% on the day.

WisdomTree Emerging Markets SmallCap Dividend Fund 1 Year Performance Chart

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

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Investing , Stocks , ETFs
Referenced Symbols: DGS

More from BNK Invest


BNK Invest

BNK Invest

Market News, Investing

Research Brokers before you trade

Want to trade FX?