AAXJ Crosses Critical Technical Indicator

In trading on Monday, shares of the iShares MSCI All Country Asia ex Japan ETF (Symbol: AAXJ) entered into oversold territory, changing hands as low as $83.74 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 All Country Asia ex Japan, the RSI reading has hit 28.6 — by comparison, the RSI reading for the S&P 500 is currently 30.8. A bullish investor could look at AAXJ's 28.6 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), AAXJ's low point in its 52 week range is $73.96 per share, with $102.44 as the 52 week high point — that compares with a last trade of $84.17. iShares MSCI All Country Asia ex Japan shares are currently trading down about 3.2% on the day.

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