In trading on Thursday, shares of the iShares International Select Dividend ETF (Symbol: IDV) entered into oversold territory, changing hands as low as $27.93 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 International Select Dividend, the RSI reading has hit 29.8 - by comparison, the RSI reading for the S&P 500 is currently 31.8. A bullish investor could look at IDV's 29.8 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), IDV's low point in its 52 week range is $27.83 per share, with $35.93 as the 52 week high point - that compares with a last trade of $27.97. iShares International Select Dividend shares are currently trading off about 2.2% on the day.