In trading on Wednesday, shares of the Proshares Short MSCI EAFE ETF ( EFZ) entered into oversold territory, changing hands as low as $34.88 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 EAFE, the RSI reading has hit 29.2 — by comparison, the RSI reading for the S&P 500 is currently 63.6. A bullish investor could look at EFZ's 29.2 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), EFZ's low point in its 52 week range is $34.75 per share, with $46.40 as the 52 week high point — that compares with a last trade of $34.88. Proshares Short MSCI EAFE shares are currently trading off about 0.6% on the day.
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