Shares of EWW Now Oversold

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In trading on Monday, shares of the iShares MSCI Mexico ETF (Symbol: EWW) entered into oversold territory, changing hands as low as $47.575 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 Mexico, the RSI reading has hit 28.1 - by comparison, the RSI reading for the S&P 500 is currently 49.3. A bullish investor could look at EWW'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), EWW's low point in its 52 week range is $47.575 per share, with $57.82 as the 52 week high point - that compares with a last trade of $47.63. iShares MSCI Mexico shares are currently trading down about 2.3% on the day.

iShares MSCI Mexico 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 , ETFs
Referenced Symbols: EWW

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