In trading on Thursday, shares of the EWY ETF (Symbol: EWY) entered into oversold territory, changing hands as low as $52.41 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 EWY, the RSI reading has hit 29.5 — by comparison, the RSI reading for the S&P 500 is currently 32.8. A bullish investor could look at EWY'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), EWY's low point in its 52 week range is $52.255 per share, with $84.19 as the 52 week high point — that compares with a last trade of $52.27. EWY shares are currently trading down about 0.9% 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.