WisdomTree Emerging Markets Local Debt Fund (ELD) Enters Oversold Territory

In trading on Friday, shares of the WisdomTree Emerging Markets Local Debt Fund ETF ( ELD) entered into oversold territory, changing hands as low as $38.72 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 Local Debt Fund, the RSI reading has hit 29.7 — by comparison, the RSI reading for the S&P 500 is currently 44.4.

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A bullish investor could look at ELD's 29.7 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), ELD's low point in its 52 week range is $38.52 per share, with $48.05 as the 52 week high point — that compares with a last trade of $38.78. WisdomTree Emerging Markets Local Debt Fund shares are currently trading off about 1.3% on the day.

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