WisdomTree Asia Local Debt Fund Getting Very Oversold

In trading on Wednesday, shares of the WisdomTree Asia Local Debt Fund ETF ( ALD) entered into oversold territory, changing hands as low as $47.54 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 Asia Local Debt Fund, the RSI reading has hit 27.5 — by comparison, the RSI reading for the S&P 500 is currently 40.7.

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A bullish investor could look at ALD'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), ALD's low point in its 52 week range is $47.54 per share, with $53.59 as the 52 week high point — that compares with a last trade of $47.58. WisdomTree Asia Local Debt Fund shares are currently trading down about 0.4% on the day.

WisdomTree Asia Local Debt Fund 1 Year Performance Chart
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