IShares MSCI Emerging Markets Value Getting Very Oversold

In trading on Thursday, shares of the iShares MSCI Emerging Markets Value ETF ( EVAL) entered into oversold territory, changing hands as low as $42.28 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 Value, the RSI reading has hit 26.3 — by comparison, the RSI reading for the S&P 500 is currently 52.6.

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

A bullish investor could look at EVAL's 26.3 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), EVAL's low point in its 52 week range is $41.82 per share, with $54.48 as the 52 week high point — that compares with a last trade of $42.28. iShares MSCI Emerging Markets Value shares are currently trading off about 3.9% on the day.

iShares MSCI Emerging Markets Value 1 Year Performance Chart

If you liked this article you might like