In trading on Wednesday, shares of the WisdomTree Indian Rupee Fund ETF (ICN) entered into oversold territory, changing hands as low as $19.50 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 WisdomTree Indian Rupee Fund, the RSI reading has hit 27.2 — by comparison, the RSI reading for the S&P 500 is currently 45.2.
A bullish investor could look at ICN's 27.2 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), ICN's low point in its 52 week range is $19.41 per share, with $22.15 as the 52 week high point — that compares with a last trade of $19.59. WisdomTree Indian Rupee Fund shares are currently trading off about 1.9% on the day.