Shares of EUFN Now Oversold

In trading on Thursday, shares of the iShares MSCI Europe Financials ETF ( EUFN) entered into oversold territory, changing hands as low as $23.10 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 Europe Financials, the RSI reading has hit 29.6 — by comparison, the RSI reading for the S&P 500 is currently 32.2.

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

A bullish investor could look at EUFN's 29.6 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), EUFN's low point in its 52 week range is $21.21 per share, with $26.65 as the 52 week high point — that compares with a last trade of $23.11. iShares MSCI Europe Financials shares are currently trading off about 1.4% on the day.

iShares MSCI Europe Financials 1 Year Performance Chart

If you liked this article you might like

British Investors Flock to Paris Before Brexit; Time to Follow Them

2 Ways You Can Profit From Europe's Banking Woes

Can European Banks Handle the 'Stress'?

Don't Get Complacent About Brexit: It's Time to Sell European Bank Stocks

How to Profit From European Banking's 'Black Hole'