EMT Crosses Critical Technical Indicator
ETF Channel Staff - Friday, November 16, 11:41 AMIn trading on Friday, shares of the EGShares Emerging Markets Energy ETF (EMT) entered into oversold territory, changing hands as low as $13.15 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 EGShares Emerging Markets Energy, the RSI reading has hit 29.5 — by comparison, the RSI reading for the S&P 500 is currently 26.8.
A bullish investor could look at EMT's 29.5 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), EMT's low point in its 52 week range is $12.44 per share, with $17.99 as the 52 week high point — that compares with a last trade of $13.15. EGShares Emerging Markets Energy shares are currently trading off about 0.3% on the day.
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