EIDO Crosses Critical Technical Indicator
ETF Channel Staff - Monday, October 9, 10:50 AMIn trading on Monday, shares of the iShares MSCI Indonesia ETF (EIDO) entered into oversold territory, changing hands as low as $21.76 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 Indonesia, the RSI reading has hit 29.4 — by comparison, the RSI reading for the S&P 500 is currently 43.7.
A bullish investor could look at EIDO's 29.4 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), EIDO's low point in its 52 week range is $21.405 per share, with $24.78 as the 52 week high point — that compares with a last trade of $21.75. iShares MSCI Indonesia shares are currently trading down about 1% on the day.
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