EWP Crowded With Sellers

In trading on Friday, shares of the iShares MSCI Spain Capped ETF ( EWP) entered into oversold territory, changing hands as low as $25.09 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 Spain Capped, the RSI reading has hit 29.1 — by comparison, the RSI reading for the S&P 500 is currently 64.1.

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A bullish investor could look at EWP's 29.1 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), EWP's low point in its 52 week range is $22.58 per share, with $31.07 as the 52 week high point — that compares with a last trade of $25.06. iShares MSCI Spain Capped shares are currently trading off about 1.5% on the day.

iShares MSCI Spain Capped 1 Year Performance Chart

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