BIK Crosses Critical Technical Indicator

In trading on Friday, shares of the SPDR S&P BRIC 40 ETF (BIK) entered into oversold territory, changing hands as low as $21.59 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 SPDR S&P BRIC 40, the RSI reading has hit 28.9 — by comparison, the RSI reading for the S&P 500 is currently 43.1.

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

A bullish investor could look at BIK's 28.9 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), BIK's low point in its 52 week range is $20.50 per share, with $26.24 as the 52 week high point — that compares with a last trade of $21.66. SPDR S&P BRIC 40 shares are currently trading down about 1.4% on the day.

SPDR S&P BRIC 40 1 Year Performance Chart

More from Stocks

Tapestry CEO Talks Trade, Kate Spade Revival and Selena Gomez

Tapestry CEO Talks Trade, Kate Spade Revival and Selena Gomez

Rewind: Jim Cramer on Home Depot, Tapestry, Nordstrom and Square

Rewind: Jim Cramer on Home Depot, Tapestry, Nordstrom and Square

What to Expect From Nordstrom on Thursday

What to Expect From Nordstrom on Thursday

Stocks Post Solid Gains as Turkey Crisis Stabilizes

Stocks Post Solid Gains as Turkey Crisis Stabilizes

Abercrombie & Fitch's Stock Has Mysteriously Skyrocketed 13% in One Month

Abercrombie & Fitch's Stock Has Mysteriously Skyrocketed 13% in One Month