Southeast Asia (ASEA) Enters Oversold Territory

In trading on Thursday, shares of the Southeast Asia ETF (ASEA) entered into oversold territory, changing hands as low as $15.10 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 Southeast Asia, the RSI reading has hit 29.6 — by comparison, the RSI reading for the S&P 500 is currently 53.0.

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A bullish investor could look at ASEA's 29.6 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), ASEA's low point in its 52 week range is $14.91 per share, with $17.63 as the 52 week high point — that compares with a last trade of $15.10. Southeast Asia shares are currently trading down about 0.4% on the day.

Southeast Asia 1 Year Performance Chart

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