EWW Crowded With Sellers

In trading on Monday, shares of the iShares MSCI Mexico ETF (Symbol: EWW) entered into oversold territory, changing hands as low as $60.352 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 25.2 — by comparison, the RSI reading for the S&P 500 is currently 61.8. A bullish investor could look at EWW's 25.2 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 $52.4303 per share, with $71.12 as the 52 week high point — that compares with a last trade of $60.41. iShares MSCI Mexico shares are currently trading down about 5.8% on the day.

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