EWA Crowded With Sellers

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In trading on Friday, shares of the iShares MSCI Australia ETF (Symbol: EWA) entered into oversold territory, changing hands as low as $21.52 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 iShares MSCI Australia, the RSI reading has hit 29.97 - by comparison, the RSI reading for the S&P 500 is currently 56.9. A bullish investor could look at EWA'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.

Looking at a chart of one year performance (below), EWA's low point in its 52 week range is $21.52 per share, with $24.185 as the 52 week high point - that compares with a last trade of $21.60. iShares MSCI Australia shares are currently trading down about 1% on the day.

iShares MSCI Australia 1 Year Performance Chart

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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 , ETFs
Referenced Symbols: EWA

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