Shares of EMGF Now Oversold
ETF Channel Staff - Monday, March 9, 11:08 AMIn trading on Monday, shares of the iShares Edge MSCI Multifactor Emerging Markets ETF (EMGF) entered into oversold territory, changing hands as low as $37.42 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 Edge MSCI Multifactor Emerging Markets, the RSI reading has hit 23.1 — by comparison, the RSI reading for the S&P 500 is currently 28.7.
A bullish investor could look at EMGF's 23.1 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), EMGF's low point in its 52 week range is $37.42 per share, with $46.68 as the 52 week high point — that compares with a last trade of $38.20. iShares Edge MSCI Multifactor Emerging Markets shares are currently trading down about 6% on the day.
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