Daily Emerging Markets Bear 3x Shares (EDZ) Enters Oversold Territory

In trading on Friday, shares of the Daily Emerging Markets Bear 3x Shares ETF ( EDZ) entered into oversold territory, changing hands as low as $39.64 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 Daily Emerging Markets Bear 3x Shares, the RSI reading has hit 29.7 — by comparison, the RSI reading for the S&P 500 is currently 60.0.

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

A bullish investor could look at EDZ's 29.7 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), EDZ's low point in its 52 week range is $39.08 per share, with $75.58 as the 52 week high point — that compares with a last trade of $39.81. Daily Emerging Markets Bear 3x Shares shares are currently trading off about 0.8% on the day.

Daily Emerging Markets Bear 3x Shares 1 Year Performance Chart
Earn a FREE $100 Membership to ValueForum, Just By Telling Us About Your Favorite Stock! (Offer ends 11/10/2013)
null

If you liked this article you might like

These Red Flags Are Telling You to Short Emerging Markets

How to Play the Fed's Interest Rate Hike in 2016

What to Buy (Carefully) if You Think Emerging Markets Will Crater

How to Profit From the Coming Emerging Market Downturn

EDZ Crosses Below Key Moving Average Level