Shares of EMCG Now Oversold

In trading on Thursday, shares of the WisdomTree Emerging Markets Consumer Growth Fund ETF (EMCG) entered into oversold territory, changing hands as low as $25.27 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 WisdomTree Emerging Markets Consumer Growth Fund, the RSI reading has hit 29.8 — by comparison, the RSI reading for the S&P 500 is currently 54.7.

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A bullish investor could look at EMCG's 29.8 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), EMCG's low point in its 52 week range is $23.51 per share, with $27.32 as the 52 week high point — that compares with a last trade of $25.27. WisdomTree Emerging Markets Consumer Growth Fund shares are currently trading down about 3.4% on the day.

WisdomTree Emerging Markets Consumer Growth Fund 1 Year Performance Chart

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