In trading on Thursday, shares of the iShares FTSE EPRA/NAREIT Developed Asia Index Fund ETF (IFAS) entered into oversold territory, changing hands as low as $33.97 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 FTSE EPRA/NAREIT Developed Asia Index Fund, the RSI reading has hit 27.5 — by comparison, the RSI reading for the S&P 500 is currently 60.0.
A bullish investor could look at IFAS's 27.5 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), IFAS's low point in its 52 week range is $25.66 per share, with $39.04 as the 52 week high point — that compares with a last trade of $34.17. iShares FTSE EPRA/NAREIT Developed Asia Index Fund shares are currently trading off about 4.2% on the day.