Investors Take Note: Is It Time to Buy?
On Friday, trading revealed that shares of the iShares MSCI Brazil ETF (Symbol: EWZ) dropped into oversold territory, trading as low as $26.96 per share. Oversold conditions are assessed using the Relative Strength Index (RSI), a tool used in technical analysis that gauges momentum on a scale from zero to 100. A stock is considered oversold when the RSI falls below 30.
Currently, the RSI for the iShares MSCI Brazil stands at 28.8, which signifies that the selling pressure may be nearing its limit. In contrast, the S&P 500 has an RSI reading of 48.0, indicating a more stable market phase.
Investors who are bullish might interpret EWZ’s 28.8 RSI as a potential opportunity. They could look for buy points, believing that the heavy selling may start to retreat.
Examining the one-year performance of the ETF, the lowest price in its 52-week range is $26.23, while the highest point reached $35.74. This places the latest trading price of $26.95 within the lower end of its range, down approximately 2.9% for the day.
Discover nine other oversold stocks worth considering »
Further Insights:
- EA market cap history
- Top Ten Hedge Funds Holding ZD
- Funds Holding ESGU
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
