In trading on Monday, shares of the WisdomTree Europe Hedged Equity Fund ETF (Symbol: HEDJ) entered into oversold territory, changing hands as low as $56.53 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 Europe Hedged Equity Fund, the RSI reading has hit 28.9 - by comparison, the RSI reading for the S&P 500 is currently 34.1. A bullish investor could look at HEDJ's 28.9 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), HEDJ's low point in its 52 week range is $52.45 per share, with $68.72 as the 52 week high point - that compares with a last trade of $56.63. WisdomTree Europe Hedged Equity Fund shares are currently trading off about 0.7% 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.