iShares Latin America 40 Getting Very Oversold

Shutterstock photo

In trading on Friday, shares of the iShares Latin America 40 ETF (Symbol: ILF) entered into oversold territory, changing hands as low as $30.20 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 Latin America 40, the RSI reading has hit 28.1 - by comparison, the RSI reading for the S&P 500 is currently 46.4. A bullish investor could look at ILF's 28.1 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), ILF's low point in its 52 week range is $28.655 per share, with $35.66 as the 52 week high point - that compares with a last trade of $30.32. iShares Latin America 40 shares are currently trading down about 1.5% on the day.

iShares Latin America 40 1 Year Performance Chart

Click here to find out what 9 other oversold dividend 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: ILF

More from BNK Invest


BNK Invest

BNK Invest

Market News, Investing

Research Brokers before you trade

Want to trade FX?