iShares MSCI EAFE Value Getting Very Oversold
In trading on Thursday, shares of the iShares MSCI EAFE Value ETF (Symbol: EFV) entered into oversold territory, changing hands as low as $40.655 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 MSCI EAFE Value, the RSI reading has hit 25.9 — by comparison, the RSI reading for the S&P 500 is currently 37.9. A bullish investor could look at EFV's 25.9 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), EFV's low point in its 52 week range is $40.655 per share, with $53.6384 as the 52 week high point — that compares with a last trade of $40.76. iShares MSCI EAFE Value shares are currently trading down about 3.1% on the day.
