In trading on Tuesday, shares of the Invesco S&P Emerging Markets Low Volatility ETF (Symbol: EELV) entered into oversold territory, changing hands as low as $22.60 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 Invesco S&P Emerging Markets Low Volatility, the RSI reading has hit 27.8 — by comparison, the RSI reading for the S&P 500 is currently 41.1. A bullish investor could look at EELV's 27.8 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), EELV's low point in its 52 week range is $22.59 per share, with $26.42 as the 52 week high point — that compares with a last trade of $22.64. Invesco S&P Emerging Markets Low Volatility shares are currently trading off about 2.1% 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.
