In trading on Thursday, shares of the iShares MSCI ACWI ETF (Symbol: ACWI) entered into oversold territory, changing hands as low as $63.01 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 ACWI, the RSI reading has hit 29.5 - by comparison, the RSI reading for the S&P 500 is currently 27.1. A bullish investor could look at ACWI's 29.5 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), ACWI's low point in its 52 week range is $63.01 per share, with $77.54 as the 52 week high point - that compares with a last trade of $63.73. iShares MSCI ACWI shares are currently trading down about 0.6% on the day.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.