FEZ Crowded With Sellers

In trading on Tuesday, shares of the SPDR EURO STOXX 50 ETF (Symbol: FEZ) entered into oversold territory, changing hands as low as $48.205 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 SPDR EURO STOXX 50, the RSI reading has hit 29.0 — by comparison, the RSI reading for the S&P 500 is currently 67.9. A bullish investor could look at FEZ's 29.0 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), FEZ's low point in its 52 week range is $42.91 per share, with $54.16 as the 52 week high point — that compares with a last trade of $48.25. SPDR EURO STOXX 50 shares are currently trading down about 1.9% on the day.

Click here to find out what 9 other oversold dividend stocks you need to know about »

Also see: