In trading on Friday, shares of the iShares MSCI Eurozone ETF (Symbol: EZU) entered into oversold territory, changing hands as low as $34.37 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 Eurozone, the RSI reading has hit 28.2 - by comparison, the RSI reading for the S&P 500 is currently 22.0. A bullish investor could look at EZU's 28.2 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), EZU's low point in its 52 week range is $34.37 per share, with $47.13 as the 52 week high point - that compares with a last trade of $34.43. iShares MSCI Eurozone shares are currently trading off about 1.6% on the day.