IShares MSCI Belgium Capped Getting Very Oversold

In trading on Wednesday, shares of the iShares MSCI Belgium Capped ETF ( EWK) entered into oversold territory, changing hands as low as $16.3601 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 MSCI Belgium Capped, the RSI reading has hit 29.5 — by comparison, the RSI reading for the S&P 500 is currently 35.8.

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

A bullish investor could look at EWK's 29.5 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), EWK's low point in its 52 week range is $14.34 per share, with $17.99 as the 52 week high point — that compares with a last trade of $16.45. iShares MSCI Belgium Capped shares are currently trading off about 0.4% on the day.

iShares MSCI Belgium Capped 1 Year Performance Chart

If you liked this article you might like

5 ETFs to Watch This Week

5 ETFs to Watch This Week

Absolute-Return ETFs Get Timing Right

Absolute-Return ETFs Get Timing Right

Investors Punish Italy ETF

Investors Punish Italy ETF

Natural Gas Falls While Gold Surges

Natural Gas Falls While Gold Surges

Dion's Weekly ETF Winners and Losers

Dion's Weekly ETF Winners and Losers