EWC Crosses Critical Technical Indicator

In trading on Thursday, shares of the iShares MSCI Canada ETF ( EWC) entered into oversold territory, changing hands as low as $31.00 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 Canada, the RSI reading has hit 27.9 — by comparison, the RSI reading for the S&P 500 is currently 50.2.

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

A bullish investor could look at EWC's 27.9 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), EWC's low point in its 52 week range is $27.21 per share, with $33.11 as the 52 week high point — that compares with a last trade of $30.97. iShares MSCI Canada shares are currently trading off about 1.3% on the day.

iShares MSCI Canada 1 Year Performance Chart

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