Shares of GXG Now Oversold

In trading on Wednesday, shares of the MSCI Colombia ETF (GXG) entered into oversold territory, changing hands as low as $10.80 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 MSCI Colombia, the RSI reading has hit 29.4 — by comparison, the RSI reading for the S&P 500 is currently 55.9.

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

A bullish investor could look at GXG'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), GXG's low point in its 52 week range is $9.98 per share, with $20.82 as the 52 week high point — that compares with a last trade of $10.81. MSCI Colombia shares are currently trading down about 0.6% on the day.

MSCI Colombia 1 Year Performance Chart

More from Stocks

Trump's 'Space Force' Could Launch a $1 Trillion Industry, Morgan Stanley Says

Trump's 'Space Force' Could Launch a $1 Trillion Industry, Morgan Stanley Says

Abiomed Stock Should Rise Some 12% From Here, Piper Jaffray Analyst Says

Abiomed Stock Should Rise Some 12% From Here, Piper Jaffray Analyst Says

Video: Here Is Why Carvana Isn't Worried About Amazon

Video: Here Is Why Carvana Isn't Worried About Amazon

Video: What Oprah's Content Partnership With Apple Means for the Rest of Tech

Video: What Oprah's Content Partnership With Apple Means for the Rest of Tech

REPLAY: Jim Cramer on the Markets, Oil, Starbucks, Tesla, Okta and Red Hat

REPLAY: Jim Cramer on the Markets, Oil, Starbucks, Tesla, Okta and Red Hat