IShares India 50 Getting Very Oversold

In trading on Monday, shares of the iShares India 50 ETF (INDY) 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 iShares India 50, the RSI reading has hit 28.2 — by comparison, the RSI reading for the S&P 500 is currently 45.2.

START SLIDESHOW:
Find out what 9 other oversold stocks you need to know about »

A bullish investor could look at INDY's 28.2 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), INDY's low point in its 52 week range is $19.50 per share, with $26.22 as the 52 week high point — that compares with a last trade of $19.58. iShares India 50 shares are currently trading off about 3.5% on the day.

iShares India 50 1 Year Performance Chart

null

More from Stocks

PayPal CEO: Retailers Coming to Us to Figure Out How to Compete Against Amazon

PayPal CEO: Retailers Coming to Us to Figure Out How to Compete Against Amazon

Dow Tumbles as Trump Calls Off North Korea Summit

Dow Tumbles as Trump Calls Off North Korea Summit

Jim Cramer: Why I am So Bullish on Apple's Services Revenue

Jim Cramer: Why I am So Bullish on Apple's Services Revenue

Jim Cramer: Does Saudi Arabia Think Oil Prices Are Too High?

Jim Cramer: Does Saudi Arabia Think Oil Prices Are Too High?

Video: Jim Cramer on North Korea, Oil Prices, Apple and Carnival Corporation

Video: Jim Cramer on North Korea, Oil Prices, Apple and Carnival Corporation