iShares MSCI BRIC Getting Very Oversold

In trading on Tuesday, shares of the iShares MSCI BRIC ETF (BKF) entered into oversold territory, changing hands as low as $36.95 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 BRIC, the RSI reading has hit 29.6 — by comparison, the RSI reading for the S&P 500 is currently 48.5.

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A bullish investor could look at BKF'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), BKF's low point in its 52 week range is $32.91 per share, with $42.26 as the 52 week high point — that compares with a last trade of $37.13. iShares MSCI BRIC shares are currently trading off about 0.5% on the day.

iShares MSCI BRIC 1 Year Performance Chart

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