DEM Crowded With Sellers
In trading on Wednesday, shares of the WisdomTree Emerging Markets High Dividend Fund ETF (Symbol: DEM) entered into oversold territory, changing hands as low as $35.27 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 WisdomTree Emerging Markets High Dividend Fund, the RSI reading has hit 27.7 — by comparison, the RSI reading for the S&P 500 is currently 42.9. A bullish investor could look at DEM's 27.7 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), DEM's low point in its 52 week range is $35.27 per share, with $47.66 as the 52 week high point — that compares with a last trade of $35.39. WisdomTree Emerging Markets High Dividend Fund shares are currently trading down about 1.3% on the day.
