In trading on Monday, shares of the Proshares Short MSCI Emerging Markets ETF ( EUM) entered into oversold territory, changing hands as low as $25.99 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 Proshares Short MSCI Emerging Markets, the RSI reading has hit 29.3 — by comparison, the RSI reading for the S&P 500 is currently 62.4. A bullish investor could look at EUM's 29.3 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), EUM's low point in its 52 week range is $25.96 per share, with $32.05 as the 52 week high point — that compares with a last trade of $26.01. Proshares Short MSCI Emerging Markets shares are currently trading down about 0.6% on the day.
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