Investors Eye Potential Buying Opportunities as RSI Dips
On Wednesday, shares of the iShares MSCI EAFE ETF (Symbol: EFA) fell into oversold territory, trading as low as $76.80 per share. The term “oversold” refers to a scenario identified by the Relative Strength Index (RSI), a technical analysis tool that gauges momentum on a scale from zero to 100. When a stock’s RSI drops below 30, it is generally considered oversold.
Currently, the RSI for iShares MSCI EAFE stands at 28.6, indicating that it is in oversold territory. In contrast, the S&P 500 features a significantly higher RSI of 64.7, suggesting a stronger market performance.
For bullish investors, the low RSI reading at 28.6 may signal that the recent wave of selling could soon come to an end, prompting opportunities for buying as the stock potentially stabilizes.
Examining the performance over the last year, the ETF has experienced a low of $70.45 per share and hit a high of $84.56. As of its last trade, EFA is priced at $77.09, reflecting a decline of about 0.9% for the day.
Free Report: Top 8%+ Dividends (paid monthly)
Discover 9 other oversold stocks worth examining »
Also see:
- Institutional Holders of ONG
- FSGI Videos
- PAGG Historical Stock Prices
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
