In trading on Wednesday, shares of the J.P. Morgan EM Local Currency Bond ETF (Symbol: EMLC) entered into oversold territory, changing hands as low as $17.0501 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 J.P. Morgan EM Local Currency Bond, the RSI reading has hit 29.6 - by comparison, the RSI reading for the S&P 500 is currently 47.9. A bullish investor could look at EMLC's 29.6 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), EMLC's low point in its 52 week range is $16.97 per share, with $19.91 as the 52 week high point - that compares with a last trade of $17.06. J.P. Morgan EM Local Currency Bond shares are currently trading off about 0.3% on the day.