IEUR Crosses Critical Technical Indicator

In trading on Friday, shares of the iShares Core MSCI Europe ETF (IEUR) entered into oversold territory, changing hands as low as $39.28 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 iShares Core MSCI Europe, the RSI reading has hit 28.2 — by comparison, the RSI reading for the S&P 500 is currently 31.4.

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A bullish investor could look at IEUR's 28.2 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), IEUR's low point in its 52 week range is $36.31 per share, with $44.48 as the 52 week high point — that compares with a last trade of $39.30. iShares Core MSCI Europe shares are currently trading off about 0.8% on the day.

iShares Core MSCI Europe 1 Year Performance Chart

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