ELD Crosses Critical Technical Indicator

In trading on Monday, shares of the WisdomTree Emerging Markets Local Debt Fund ETF ( ELD) entered into oversold territory, changing hands as low as $45.7401 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 WisdomTree Emerging Markets Local Debt Fund, the RSI reading has hit 29.9 — by comparison, the RSI reading for the S&P 500 is currently 48.9.

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

A bullish investor could look at ELD's 29.9 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), ELD's low point in its 52 week range is $43.62 per share, with $48.95 as the 52 week high point — that compares with a last trade of $45.77. WisdomTree Emerging Markets Local Debt Fund shares are currently trading down about 0.3% on the day.

WisdomTree Emerging Markets Local Debt Fund 1 Year Performance Chart

If you liked this article you might like

Emerging Market Debt Holders Beware

Emerging Market Debt Holders Beware

WisdomTree Emerging Markets Local Debt Fund Getting Very Oversold

WisdomTree Emerging Markets Local Debt Fund Getting Very Oversold

Ukraine's Lesson for Investors: Know What's in Your ETFs

Ukraine's Lesson for Investors: Know What's in Your ETFs

Why It Pays to Own These Emerging Markets Bonds

Why It Pays to Own These Emerging Markets Bonds

10 ETFs to Buy for 2012

10 ETFs to Buy for 2012