EEMS Crowded With Sellers

In trading on Monday, shares of the iShares MSCI Emerging Markets Small-Cap ETF (EEMS) entered into oversold territory, changing hands as low as $48.08 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 Small-Cap, the RSI reading has hit 29.4 — by comparison, the RSI reading for the S&P 500 is currently 50.0.

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

A bullish investor could look at EEMS's 29.4 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), EEMS's low point in its 52 week range is $44.19 per share, with $52.40 as the 52 week high point — that compares with a last trade of $48.98. iShares MSCI Emerging Markets Small-Cap shares are currently trading down about 1.9% on the day.

iShares MSCI Emerging Markets Small-Cap 1 Year Performance Chart

More from Stocks

REPLAY: Jim Cramer on How to Navigate the Stock Market Amid Tariff Worries

REPLAY: Jim Cramer on How to Navigate the Stock Market Amid Tariff Worries

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

3 Warren Buffett Stock Picks That Could Be Perfect for Your Retirement Portfolio

3 Warren Buffett Stock Picks That Could Be Perfect for Your Retirement Portfolio

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

Why Starbucks Latest Data Reveal Should Worry Investors

Why Starbucks Latest Data Reveal Should Worry Investors