iShares MSCI Brazil Getting Very Oversold
ETF Channel Staff - Tuesday, April 16, 1:38 PMIn trading on Tuesday, shares of the iShares MSCI Brazil ETF (EWZ) entered into oversold territory, changing hands as low as $29.90 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 Brazil, the RSI reading has hit 29.0 — by comparison, the RSI reading for the S&P 500 is currently 38.6.
A bullish investor could look at EWZ's 29.0 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), EWZ's low point in its 52 week range is $27.20 per share, with $35.74 as the 52 week high point — that compares with a last trade of $30.11. iShares MSCI Brazil shares are currently trading down about 2.5% on the day.
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