EMC Crosses Critical Technical Indicator
ETF Channel Staff - Thursday, September 21, 12:25 PMIn trading on Thursday, shares of the EMC ETF (EMC) entered into oversold territory, changing hands as low as $23.8504 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 EMC, the RSI reading has hit 29.6 — by comparison, the RSI reading for the S&P 500 is currently 34.8.
A bullish investor could look at EMC'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), EMC's low point in its 52 week range is $23.361 per share, with $26.45 as the 52 week high point — that compares with a last trade of $23.92. EMC shares are currently trading off about 1.3% on the day.
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