Shares of EIDO Now Oversold

In trading on Friday, shares of the iShares MSCI Indonesia ETF (EIDO) entered into oversold territory, changing hands as low as $23.585 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 MSCI Indonesia, the RSI reading has hit 26.4 — by comparison, the RSI reading for the S&P 500 is currently 55.9.

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A bullish investor could look at EIDO's 26.4 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), EIDO's low point in its 52 week range is $19.17 per share, with $27.06 as the 52 week high point — that compares with a last trade of $23.60. iShares MSCI Indonesia shares are currently trading off about 3.4% on the day.

iShares MSCI Indonesia 1 Year Performance Chart

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