IShares MSCI Emerging Markets Asia (EEMA) Enters Oversold Territory

In trading on Monday, shares of the iShares MSCI Emerging Markets Asia ETF (EEMA) entered into oversold territory, changing hands as low as $58.11 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 Emerging Markets Asia, the RSI reading has hit 24.8 — by comparison, the RSI reading for the S&P 500 is currently 47.2.

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

A bullish investor could look at EEMA's 24.8 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), EEMA's low point in its 52 week range is $51.65 per share, with $63.30 as the 52 week high point — that compares with a last trade of $58.37. iShares MSCI Emerging Markets Asia shares are currently trading off about 1.7% on the day.

iShares MSCI Emerging Markets Asia 1 Year Performance Chart

More from Stocks

Dow Futures Plunge, Global Markets Rocked as Trump Takes Trade War to Next Level

Dow Futures Plunge, Global Markets Rocked as Trump Takes Trade War to Next Level

Jim Cramer: 4 Stocks Could Get Throttled By a 'Knock Down Drag Out' With China

Jim Cramer: 4 Stocks Could Get Throttled By a 'Knock Down Drag Out' With China

Trump Threatens More Tariffs and 4 Other Stories to Watch Tuesday Morning

Trump Threatens More Tariffs and 4 Other Stories to Watch Tuesday Morning

Trump Issues New Trade Threats, Apple, ZTE, GameStop - 5 Things You Must Know

Trump Issues New Trade Threats, Apple, ZTE, GameStop - 5 Things You Must Know

50 Stocks That Could Be Shredded If a U.S. Trade War With China Ignites

50 Stocks That Could Be Shredded If a U.S. Trade War With China Ignites